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SOUTH METRO FIRE RESCUE FIRE
PROTECTION DISTRICT
ARAPAHOE, DOUGLAS and JEFFERSON COUNTIES,
COLORADO
Annual Comprehensive Financial Report
For the Fiscal Year Ended
December 31, 2022
Prepared by:
South Metro Fire Rescue Fire Protection District Finance Division
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal
1 - 5
Certificate of Achievement Award
6
Organizational Chart
7
List of Principal Officials
8
FINANCIAL SECTION
Independent Auditor's Report
9- 12
Management’s Discussion and Analysis
13-21
Basic Financial Statements
22
Government-wide Financial Statements
Statement of Net Position
23
Statement of Activities
24
Fund Financial Statements
Balance Sheet – Governmental Funds
25
Statement of Revenues
,
Ex
p
enditures and Chan
g
es in Fund Balances
–
Governmental Funds
26
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
27
Statement of Net Position – Proprietary Funds
28
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds
29
Statement of Cash Flows -Proprietary Fund
30
Notes to Financial Statements
31
REQUIRED SUPPLEMENTAL INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual – General Fund
77
Schedule of Changes in Net Pension Liability/(Asset) and Related Ratios
Parker Fire Protection District Volunteer Pension Plan
78
South Metro Fire Rescue Volunteer Pension Plan
79
Cherry Hills Old Hire Plan
80
Schedule of Changes in Net OPEB Liability and Related Rations – Retiree Health Savings Plan
81
Schedule of the District’s Proportionate Share of the Net Pension Liability/(Asset)
South Metro Fire Rescue FPPA Plan – Statewide Defined Benefit Plan
82
South Metro Fire Rescue FPPA Plan – Statewide Hybrid Plan
83
Schedule of Contributions Multiyear
Parker Fire Protection District Volunteer Pension Plan
84
South Metro Fire Rescue Volunteer Pension Plan
85
Cherry Hills Old Hire Plan
86
South Metro Fire Rescue FPPA Plan – Statewide Defined Benefit Plan
87
South Metro Fire Rescue FPPA Plan – Statewide Hybrid Plan
88
Notes to Required Supplementary Information
89
SUPPLEMENTARY INFORMATION
General Fund
Comparative Statement of Revenues, Expenditures and Changes in Fund Balances
92
Special Revenue Fund - Cherry Hills Property Tax – Special Revenue Fund
Comparative Statement of Revenues, Expenditures and Changes in Fund Balances
93
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual
94
Capital Projects Fund
Comparative Statement of Revenues, Expenditures and Changes in Fund Balances
95
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
96
Building Rental Fund
Schedule of Revenues, Expenditures and Changes in Funds Available
Budgetary Basis with Non-GAAP to GAAP Basis
97
STATISTICAL SECTION
Financial Trends:
Net Position by Component
99
Changes in Net Position
100
Fund Balances, Governmental Funds
101
Changes in Fund Balances, Governmental Funds
102
Revenue Capacity:
Tax Revenues by Source, Governmental Funds
103
Assessed Value and Estimated Actual Value of Taxable Property
104
Direct and Overlapping Property Tax Rates
105
Principal Property Taxpayers
106
Property Tax Levies and Collections
107
Debt Capacity:
Ratios of Outstanding Debt by Type
108
Direct and Overlapping Governmental Activities Debt
109
Legal Debt Margin Information
110
Demographic and Economic Statistics:
Demographic and Economic Statistics
111
Principal Employers
112
Operating Information:
Full-time Equivalent District Government Employees by Function/Program
113
Operating Indicators by Function/Program
114
Capital Asset Statistics by Function/Program
115
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in Accordance with
Government
Auditing
Standards
– Independent Auditor’s Report
116
Schedule of Findings and Responses
118
SOUTH METRO FIRE RESCUE
FIRE PROTECTION DISTRICT
1
June 28, 2023
Members of the Board of Directors, and
Citizens of South Metro Fire Rescue Fire Protection District:
State law requires that all special districts with revenues in excess of $750,000 file an annual
report with the State Auditor within seven months of the close of their fiscal year.
This
annual report includes a complete set of financial statements presented in conformance with
generally accepted accounting principles (GAAP) and audited in accordance with generally
accepted auditing standards (GAAS) by a firm of licensed certified public accountants.
Pursuant to that requirement, we hereby issue the annual report of South Metro Fire Rescue
Fire Protection District for the fiscal year ended December 31, 2022.
This report consists of management’s representations concerning the finances of South Metro
Fire Rescue Fire Protection District.
Consequently, management assumes full responsibility
for the completeness and reliability of all the information presented in this report. To provide
a reasonable basis for making these representations, management of South Metro Fire
Rescue Fire Protection District has established a comprehensive internal control framework
that is designed both to protect the government’s assets from loss, theft, or misuse and to
compile sufficient reliable information for the preparation of South Metro Fire Rescue Fire
Protection District’s financial statements. Because the cost of internal controls should not
outweigh their benefits, South Metro Fire Rescue Fire Protection District‘s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As
management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
South Metro Fire Rescue Fire Protection District’s financial statements have been audited by
FORVIS, LLP, a firm of licensed certified public accountants. The goal of the independent
audit was to provide reasonable assurance that the financial statements of South Metro Fire
Rescue Fire Protection District for the fiscal year ended December 31, 2022, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditor concluded, based upon the audit,
that there was a reasonable basis for rendering unmodified opinions, that South Metro Fire
Rescue Fire Protection District’s financial statements for the fiscal year ended December 31,
2022, are fairly presented in conformity with GAAP. The independent auditor’s report is
presented as the first component of the financial section of this report.
9195 t Mineral Avenue, Centennial,
Phone:
720-989-2000
Fax:
720-989-2001
2
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it. South Metro Fire Rescue Fire Protection District’s
MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
South Metro Fire Rescue Fire Protection District (the District) was legally established on
December 14, 2015 but is an amalgamation of departments and districts that date back to
1890. In 2008, South Metro Fire Rescue, formerly the Castlewood Fire Protection District
(itself an amalgamation of smaller fire districts including Cherry Hills Fire Protection
District, Northwest Douglas County Fire Protection District, and Louviers Fire Protection
District, and Castle Pines Village Fire Protection District) united with Parker Fire Protection
District to create the South Metro Fire Rescue Authority. On December 14, 2015, Parker Fire
Protection District included the property of South Metro Fire Rescue into its district and
changed its name to South Metro Fire Rescue Fire Protection District resulting in a single,
unified fire protection district.
Beginning in 2016, the District began discussing a process to unify with Cunningham Fire
Protection District and Littleton Fire Rescue which comprised the City of Littleton Fire
Department, the Littleton Fire Protection District, and the Highlands Ranch Metropolitan
District. On January 1, 2018, South Metro Fire Rescue Fire Protection District and
Cunningham Fire Protection District officially merged as one entity named South
Metro/Cunningham Fire Rescue Authority. Successful elections were held throughout 2018
where the electorate of the City of Littleton, Littleton Fire Protection District, and Highlands
Ranch Metropolitan District voted to include into South Metro Fire Rescue Fire Protection
District again creating a single, unified fire protection district effective January 1, 2019. On
January 1, 2020, the entity started operating as South Metro Fire Rescue Fire Protection
District.
The District is governed, pursuant to provisions of the Colorado Special District Act, by a
seven-member Board of Directors.
The District's Fire Chief has all powers and authorities
provided for a fire chief under §32-1-1002, C.R.S., and oversees and manages all business
and affairs of the District including the operation, maintenance, management, administration,
and provision of all facilities, improvements, equipment, services and personnel.
The District’s service area is located in Douglas, Arapahoe and Jefferson Counties, Colorado.
The District was established to provide fire protection and emergency medical services. The
District area includes 285 square miles and overlaps the cities of Bow Mar, Castle Pines,
Castle Pines Village, Centennial, Cherry Hills Village, Columbine Valley, Foxfield,
Greenwood Village, Highlands Ranch, Lakewood, Louviers, Littleton, Lone Tree, and
Parker, as well as some unincorporated areas in Douglas, Arapahoe and Jefferson counties.
It
includes the business parks of Meridian and Inverness, the Denver Tech Center, Centennial
Airport and Park Meadows Mall.
3
The District currently serves approximately 561,000 residents in Douglas, Arapahoe and
Jefferson Counties and protects approximately 210,000 households.
46% of the District’s
population is in Douglas County with 48% in Arapahoe County and 6% in Jefferson County.
The daytime population of the District is estimated to be 595,000.
The District’s Long-Term Financial Plan, Capital Improvement Plan, and annual budget
serve as the foundation for the District’s financial planning and control. The District
maintains budgetary controls that have the objective of ensuring compliance with legal
provisions embodied in the annual appropriated budget adopted by the Board of Directors.
The Board of Directors is required to adopt a final budget no later than December 31 of each
year.
The District uses several funds to account for the activities involved in providing
services to the public.
The appropriation is at the total fund expenditure level.
Local Economy
Three years post the COVID-19 pandemic, Colorado’s local economy continues to recover,
albeit slowly. Inflation in the Denver metro area peaked at 9.1% in 2022 but the downward
trend ended the year at 6.4% CPI. The labor market remains strong and resilient with an an-
all time low unemployment rates. Rising interest rates pushed home values down by 15.7%
from an all-time high in May 2022. Construction has remained steady within the District’s
boundaries. Nevertheless, the economic volatility and risk of recession holds some
uncertainty for construction and housing values alike.
In 2022, the unemployment rate in Douglas County was 2.5%, Arapahoe County was 3.1%,
and Jefferson County was 2.8%. This compares to 3% for the Colorado state and 3.6% for
the United States.
Over the last decade, the assessed valuation of the District has grown dramatically due to
soaring real estate values across the Denver metro area. In 2022, the Denver metro area saw
an all-time high in housing values, but ballot measures continue to push residential
assessment rates down to control property tax costs for its residents. The growth in assessed
valuation over the last 5 years has averaged 18.2%. Assessed valuation in the 2022 budget
year showed an increase of 8.2% over the prior year.
According to the most recent data, the per capita income for Douglas County was $87,841,
Arapahoe County was $74,267, and Jefferson County was $74,822. This is higher than the
State of Colorado average of $74,167 and the national average of $65,423. The education
level of the population in the area covered by the District is higher than the state and the
national average with 50.5% having a college degree. The median home value is $600,000.
Long-Term Financial Planning and Relevant Policies
The District consistently develops long-term financial plans as planning tools to ensure the
District remains on solid financial footing. To ensure the District keeps abrest of and
incorporates economic conditions into its financial plans, revenues, expenses, and capital
4
improvements are projected for the next ten years. A forecast is updated annually as part of
the budget process.
The District believes maintaining adequate reserves is a prudent financial management
practice. To this end, District policy mandates a 3% TABOR reserve as required by state law,
a 20% operating reserve, and a capital project reserve that is sufficient to provide for
expenses outlined in the District’s various planning documents. District policy also stipulates
a minimum transfer from the General Fund to the Capital Projects Fund in order to fund
capital improvements in accordance with the District’s Capital Improvement Plan. District
policy also establishes an adequate reserve in its self-insurance fund in order to
accommodate cash flow needs, unanticipated claims and stabilized premiums.
Major Initiatives
The District continues to implement major initiatives that are guided by its 2021-2025
Strategic Plan. The District is in its final years of increasing firefighting staffing levels to
include four firefighters on each engine. In addition, the District implemented an EMS
rank structure that aligns ranks, roles, and responsibilities for paramedic officers with
those of suppression officers. Both of these initiatives add an increased level of service to
the citizens we serve.
In addition, the District continues to execute on its aggressive capital improvement plan.
Apparatus and critical equipment are being replaced despite the very extended lead times
caused by the pandemic. The District’s facilities remain a top priority. Station 15 is in the
process of being resigned and rebuilt with an anticipated completion date of June 2024.
Budget Process
The District’s annual budget process begins with updating the long-term financial plan which
includes projected revenues and expenses including apparatus and equipment replacement,
new construction, and station improvements. The long-term plan outlines District’s goals and
priorities and serves as a foundation for developing the annual budget. The budget
development process starts each summer and requires divisions to submit their expenditure
requests along with justifications. The Finance Division and Executive Team reviews and
prioritizes requests and Finance Division prepares the proposed budget. The budget is
presented to the Board of Directors each year by October 15 as statutorily required. The
Board is required to hold a public budget hearing and to adopt the final budget no later than
December 31. The mill levy is certified to the County Commissioners no later than
December 15. Any revisions to the budget appropriations must be approved through a
resolution by the Board of Directors.
6
Citizens
Citiz
e
n
s
Citizens
Board of Directors
B
oa
r
d
o
f Dir
ec
t
o
r
s
Board of Directors
Bob Baker
Fire Chief
Bob Baker
Fire Chief
John Curtis
John Curtis
Deputy Chief
Emergency Services
J
oh
n C
u
rti
s
Depu
ty C
hief
E
mer
g
ency Services
John Curtis
Deputy Chief
Emergency Services
Dillon Miskimins
Dillon Miskimins
CFO
Business Services
D
i
llo
n Mi
sk
imin
s
CFO
Bus
in
ess
Se
rvi
ces
Dillon Miskimins
CFO
Business Services
South Metro Fire Rescue
Organizational Chart
202
Ϯ
Jon Adams
Deputy Chief
Internal Services
Jon Adams
Deputy Chief
Internal Services
Dispatch
Dispatc
h
Dispatch
Special Operations
S
pecia
l
Operations
Special Operations
Facilities
Fac
i
l
iti
es
Facilities
IT/GIS
IT
/
GIS
IT/GIS
FMO
FM
O
FMO
Communications
C
o
mm
u
ni
ca
ti
o
n
s
Communications
Strategic Services
S
trate
gi
c Serv
i
ces
Strategic Services
Local 2086
Loc
al
2
086
Local 2086
Wellness
Well
n
ess
Wellness
Professional Development
P
rofessional Developmen
t
Professional Development
CRRS
CRR
S
CRRS
Emergency Management
E
mer
g
ency Mana
g
emen
t
Emergency Management
Kristin Eckmann
Deputy Chief
Community
Services
Kristin Eckmann
Deputy Chief
Community
Services
Kevin Milan
Kevin Milan
Construction
Management
Kevi
n Mi
lan
C
o
n
s
tr
uc
ti
o
n
M
ana
geme
n
t
Kevin Milan
Construction
Management
Camie Chapman
Camie Chapman
CHRO
Human Resources
Camie C
h
apma
n
CHR
O
H
u
m
a
n R
esou
r
ces
Camie Chapman
CHRO
Human Resources
Mike Dell
’
Orfano
Chief Government
Affairs Officer
Mike Dell
’
Orfano
Chief Government
Affairs Officer
Finance
Fin
anc
e
Finance
LOGS
L
O
G
S
LOGS
Fleet
Fleet
Fleet
Barb Andrews
Barb Andrews
Exec. Assist.
Ba
r
b
An
d
r
e
w
s
Ex
ec
. A
ss
i
s
t.
Barb Andrews
Exec. Assist.
Andy Powell
Andy Powell
Division Chief
Human Perform. &
Optimization
A
ndy Pow
ell
D
ivi
s
i
o
n Chi
e
f
Hu
m
a
n P
e
rf
o
rm. &
Optimizatio
n
Andy Powell
Division Chief
Human Perform. &
Optimization
Scott Richardson
Scott Richardson
Division Chief
Line Support
Sco
tt Ri
cha
r
dso
n
Divi
s
i
o
n Chi
e
f
Line Sup
port
Scott Richardson
Division Chief
Line Support
Jens Pietrzyk
Jens Pietrzyk
Division Chief
EMS
Jens Pietrzy
k
Divi
s
i
o
n Chi
e
f
EM
S
Jens Pietrzyk
Division Chief
EMS
Jeff Tasker
Jeff Tasker
Division Chief
Operations
J
e
ff T
as
k
e
r
Divi
s
i
o
n Chi
e
f
Operations
Jeff Tasker
Division Chief
Operations
Technical Training
Technical Training
T
ec
h
nica
l
Train
ing
Technical Training
7
8
GOVERNANCE
As of December 31, 2022
Appointed Officials, Board of Directors
Jim Albee, Chair
Renee Anderson, Vice Chair
William Shriver, Treasurer
Sue Roche, Secretary
Kevin Leung, Director
Cindy Hathaway, Director
Rich Sokol, Director
Executive Team
Bob Baker, Fire Chief
John Curtis, Deputy Chief of Emergency Services
Kristin Eckmann, Deputy Chief of Community Services
Jon Adams, Deputy Chief of Internal Services
Camie Chapman, Human Resources Director
Mike Dell’Orfano, Chief Government Affairs Officer
Dillon Miskimins, Chief Financial Officer
Independent Auditor’s Report
Board of Directors
South Metro Fire Rescue Fire Protection District
Centennial, Colorado
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the South Metro Fire Rescue Fire Protection
District (the District), as of and for the year ended December 31, 2022, and the related notes to the
financial statements, which collectively comprise the District’s basic financial statements as listed in the
table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the South Metro Fire Rescue Fire Protection
District, as of December 31, 2022, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in
Government Auditing
Standards
, issued by the Comptroller General of the United States (
Government Auditing Standards
).
Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the
Audit of the Financial Statements” section of our report.
We are required to be independent of the District
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
9
Board of Directors
South Metro Fire Rescue Fire Protection District
2
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as
a going concern for 12 months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government
Auditing Standards
will always detect a material misstatement when it exists.
The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and
Government Auditing Standards
, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks.
Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the District’s internal control.
Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the District’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
10
Board of Directors
South Metro Fire Rescue Fire Protection District
3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, budgetary comparison, pension, and other postemployment benefit information
be presented to supplement the basic financial statements.
Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context.
We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit for the year ended December 31, 2022 was conducted for the purpose of forming opinions on
the financial statements that collectively comprise the District's basic financial statements.
The comparative fund financial statements and other schedules
for the year ended December 31, 2022
are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements for the year ended December 31, 2022 and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America.
In our opinion, the comparative fund financial statements and other schedules
is fairly stated in
all material respects in relation to the basic financial statements as a whole for the year ended
December 31, 2022.
The District's basic financial statements for the year ended December 31, 2021 (not presented herein),
were audited by other auditors whose report thereon dated June 29, 2022, expressed unmodified
opinions on the respective financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information.
The report of the other auditors dated
June 29, 2022, stated that the comparative fund financial statements and other schedules for the year
ended December 31, 2021 was subjected to the auditing procedures applied in the audit of the 2021
basic financial statements and certain additional auditing procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare those basic
financial statements or the those basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America and, in their
opinion, was fairly stated in all material respects in relation to the basic financial statements as a whole
for the year ended December 31, 2021.
11
Board of Directors
South Metro Fire Rescue Fire Protection District
4
Other Information
Management is responsible for the other information included in the annual comprehensive financial
report.
The other information comprises the introductory and statistical sections but does not include the
basic financial statements and our auditor’s report thereon.
Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated.
If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by
Government Auditing Standards
In accordance with
Government Auditing Standards
, we have also issued our report dated June 28, 2023,
on our consideration of the District’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements, and other
matters.
The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the District’s internal control over financial reporting or on compliance.
That report is an
integral part of an audit performed in accordance with
Government Auditing Standards
in considering the
District’s internal control over financial reporting and compliance.
Denver, Colorado
June 28, 2023
12
13
South Metro Fire Rescue Fire Protection District
Management’s Discussion and Analysis
As management of South Metro Fire Rescue Fire Protection District (the District), we offer
readers of the District’s financial statements this narrative overview and analysis of the
financial activities of the District for the fiscal year ending December 31, 2022. We
encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal, which can be found on pages
1 - 5 of this report.
Financial Highlights
•
The total assets and deferred outflows of South Metro Fire Rescue exceeded its
liabilities and deferred inflows of resources at the close of the most recent fiscal year
by $131,549,366. Of this amount $29,486,095 may be used to meet the government’s
ongoing obligations to citizens and creditors.
•
The government’s total net position decreased by $14,425,901. The decrease is
primarily related to the new OPEB RHS liability.
•
The District’s total liabilities and deferred inflows of resources are $177,407,454.
This is $24,737,034 or 16.20% increase from 2021, primarily due to increase in
accounts payable, unearned revenue, and addition of OPEB RHS liability and new
leases.
•
As of the close of the current fiscal year, the District’s governmental funds reported
combined ending fund balances of $62,999,432.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to South Metro Fire
Rescue Fire Protection District’s basic financial statements. The District’s basic financial
statements are comprised of three components:
•
government-wide financial statements
•
fund financial statements
•
notes to the financial statements
This report also contains other required and other supplementary information in addition to
the basic financial statements themselves.
Government-wide financial statements
. The government-wide financial statements are
designed to provide readers with a broad overview of the District’s finances in a manner
similar to a private-sector business.
The statement of net position presents information on all of the District’s assets and deferred
outflows of resources and liabilities and deferred inflows of resources, with the difference
between the two is reported as net position. Over time, increases or decreases in net position
14
may serve as a useful indicator of whether the financial position of the District is improving
or deteriorating.
The statement of activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods.
Both of the government-wide financial statements distinguish functions of the District that
are principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business-type activities). The governmental activities of the
District include Operations, Fire Marshal, Dispatch, and Administration. The business-type
activities of the District include the Building Rental Fund.
The government-wide financial statements can be found on pages 23 - 24 of this report.
Fund financial statements.
A fund is a grouping of related accounts that is used to
maintain
control over resources that have been segregated for specific activities or objectives. South
Metro Fire Rescue Fire Protection District, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance related legal requirements.
All of the funds of the District can be divided into two categories:
•
governmental funds
•
proprietary funds
Governmental Funds
. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflow and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the
government’s near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures and changes in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The District maintains three individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the General Fund, Capital Projects
15
Fund, and the Cherry Hills Property Tax Special Revenue Fund. The General Fund and
Capital Projects Fund are considered to be major funds, while the Cherry Hills Property Tax
Special Revenue Fund is considered to be a non-major fund.
The District adopts an annual appropriated budget for its general fund, capital projects fund,
and special revenue fund. Budgetary comparison schedules have been provided as
supplemental information for the general fund, the capital projects fund, and the special
revenue fund to demonstrate compliance with these budgets.
The basic governmental fund financial statements can be found on pages 25 – 27 of this
report.
Proprietary Funds.
The District maintained two proprietary funds in 2022 which are the
Building Rental Enterprise Fund and the Self-Insured Internal Service Fund. Enterprise funds
are used to report the same functions presented as business-type activities in the government-
wide financial statements. The District uses an enterprise fund to account for and capture
rental income, common area maintenance costs and items that relate to the maintenance of
the administrative building. The Self-Insured Internal Service Fund is created for the benefit
of employees as it collects the medical premiums to pay medical claims of the insured, stop
loss insurance and administration fees.
The proprietary fund financial statements provide separate information for the Building
Rental Fund, a major fund of the District, and Self-Insured Internal Service Fund.
The basic proprietary fund financial statements can be found on pages 28 - 29 of this report.
Notes to the financial statements.
The notes provide additional information that is
essential
to a full understanding of the data provided in the government-wide and fund financial
statements. The notes to the financial statements can be found on pages 31-75 of this report.
Other Information
. In addition to the basic financial statements and accompanying
notes,
this report also presents certain required and other supplementary information concerning the
South Metro Fire Rescue Fire Protection District’s financial and operational activity. This
supplementary information and individual fund statements and schedules can be found on
page 76 - 97 of this report.
Government-Wide Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of the government’s
financial position. In the case of South Metro Fire Rescue Fire Protection District, assets
exceeded liabilities by $131,549,366 at the close of the most recent fiscal year.
16
A portion of the District’s net position reflects its investment in capital and lease assets (i.e.,
land, buildings, vehicles, and equipment); less any related debt used to acquire those assets
that is still outstanding. The District uses these assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the District’s
investment in its capital and lease assets is reported net of related debt, it should be noted
that the resources needed to repay this debt must be provided from other sources, since the
capital and lease assets themselves cannot be used to liquidate these liabilities.
At the end of the current fiscal year, the District is able to report a positive balance in all
categories of net position, both for the government as a whole as well as for its business-type
activities. The District’s net position decreased by $14,425,901 during the current fiscal year.
The decrease is primarily related to the new OPEB RHS liability.
Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer’s Bill
of Rights (TABOR) contains the requirement of setting an emergency reserve. This reserve
cannot be accessed except for during an unexpected disaster. This reserve amounts to
$4,808,356 as of December 31, 2022.
Governmental Activities
. Governmental activities decreased South Metro Fire Rescue Fire
Protection District’s net position by $14,170,350. Key elements of this decrease are as
follows:
•
Overall both expenses and revenues increased when compared to 2021. The revenue
growth of $15.5 million is associated with the increased property tax collections,
charges for services of transports, and Medicaid supplement fee reimbursement.
Governmental
Activities
Business-Type
Activities
Total
Governmental
Activities
Business-Type
Activities
Total
2022
2022
2022
2021
2021
2021
Current and other assets
212,105,519
$
2,752,999
$
214,858,518
$
200,718,820
$
3,333,975
$
204,052,795
$
Capital and lease assets, net
78,270,022
5,654,670
83,924,692
76,875,572
5,990,896
82,866,468
Total assets
290,375,541
8,407,669
298,783,210
277,594,392
9,324,871
286,919,263
Total deferred outflows of
resources
10,173,610
—
10,173,610
11,726,424
—
11,726,424
Current and other liabilities
11,656,216
27,847
11,684,063
7,042,280
141,402
7,183,682
Noncurrent and other
liabilities
26,560,879
—
26,560,879
9,769,585
—
9,769,585
Total liabilities
38,217,095
27,847
38,244,942
16,811,865
141,402
16,953,267
Total deferred inflows of
resources
136,920,566
2,241,946
139,162,512
132,927,111
2,790,042
135,717,153
Net position:
Net investments in capital
and lease assets
74,406,518
5,654,670
80,061,188
75,283,384
5,990,896
81,274,280
Restricted
22,002,083
—
22,002,083
6,073,619
—
6,073,619
Unrestricted
29,002,889
483,206
29,486,095
58,224,837
402,531
58,627,368
Total net position
125,411,490
$
6,137,876
$
131,549,366
$
139,581,840
$
6,393,427
$
145,975,267
$
17
•
An increase in overall expenses of $33.6 million is related to market adjustments to
current salaries, increases in benefit costs including the new OPEB RHS, overtime
related personnel shortages, and a rise in costs of goods and services due to inflation.
Governmental
Activities
Business-Type
Activities
Total
Governmental
Activities
Business-Type
Activities
Total
Revenues:
2022
2022
2022
2021
2021
2021
Program revenues:
Charges for services
17,789,098
$
—
$
17,789,098
$
12,434,136
$
—
$
12,434,136
$
Operating Grants and
Contributions
167,080
765,319
932,399
191,700
809,823
1,001,523
General revenues:
Property and other taxes
134,798,924
—
134,798,924
124,287,044
—
124,287,044
Other income
10,190,031
—
10,190,031
10,579,644
99
10,579,743
Total revenues
162,945,133
765,319
163,710,452
147,492,524
809,922
148,302,446
Expenses:
Operations
123,401,598
—
123,401,598
101,426,388
—
101,426,388
Administration
44,255,426
—
44,255,426
33,421,508
—
33,421,508
Fire Marshal
5,513,590
—
5,513,590
5,328,172
—
5,328,172
Dispatch
3,944,869
—
3,944,869
3,307,622
—
3,307,622
Rental building
—
1,020,870
1,020,870
—
824,751
824,751
Total expenses
177,115,483
1,020,870
178,136,353
143,483,690
824,751
144,308,441
Transfers in (out)
—
—
—
1,132,598
(2,000,000)
(867,402)
Increase (decrease) in net
position
(14,170,350)
(255,551)
(14,425,901)
5,141,432
(2,014,829)
3,126,603
Net position-beginning
139,581,840
6,393,427
145,975,267
134,440,408
8,408,256
142,848,664
Net position-ending
125,411,490
$
6,137,876
$
131,549,366
$
139,581,840
$
6,393,427
$
145,975,267
$
Changes in Net Position
South Metro Fire Rescue Fire Protection District
18
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
105
110
115
120
125
130
Operations
Administration
Fire Marshal
Dispatch
Millions of Dollars
Expenses and Program Revenues
‐
Governmental
Activities
Expenses
Program Revenues
19
Business-Type Activities.
Business-type activities decreased the District’s net position by
$255,551, which is related to the increase in operating expenses combined with a slight dip
in revenue.
Financial Analysis of the Government’s Funds
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental Funds. The focus of the District’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the District’s financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the District’s governmental funds reported combined
fund balances of $62,999,432, an increase of $2,419,001 from the beginning of the year. This
increase is largely due to an increase in property tax collections and other income. A large
portion of the District's fund balance constitutes unassigned fund balance, of which
$30,755,152 is held as operating reserve intended to be used in limit circumstances. The
TABOR emergency reserve of $4,808,356 is legally restricted. The non-spendable inventory
and prepaid items along with the amount restricted for pension payments, Excise tax revenue
and JACC projects are also not available for spending by the District.
The general fund is the principle operating fund of the District. At the end of the current
fiscal year, total fund balance was $42,026,486, which represents 27.6% of total general fund
expenditures.
‐
200
400
600
800
1,000
1,200
Building Rental
Thousands of Dollars
Expenses & Program Revenues
‐
Business
‐
Type
Activities
Expenses
Program Revenues
20
The fund balance of the District’s general fund decreased by approximately $6.3 million
during the current fiscal year. This is primarily related to increased operating expenses and a
$15 million transfer to the Capital Projects Fund to fund capital improvements.
The significant variance in the Capital Project Fund actual expenditures compared to budget
for the capital outlay is primarily related to purchase of fire apparatus that was recorded to a
prepaid account until it is placed in service, at which time it will be expensed, and the new
warehouse lease entry to establish the lease asset.
Proprietary Funds
. The District’s proprietary funds provide details of the activity of the
Building Rental Fund and the Self-Insured Internal Service Fund.
The Building Rental Fund has a positive unrestricted net position balance of $483,206,
which increased only by $80,675 from prior year due to the increase in accumulated
depreciation which caused net investment in capital assets to decrease.
The Self-Insured Internal Service Fund has a positive unrestricted net position balance of
$121,937, which decreased by $532,755 from prior year. The change is due to increased
medical payments in 2022.
Capital and Lease Assets and Debt Administration
Capital and Lease Assets.
The District’s investment in capital and lease assets for its
governmental and business type activities as of December 31, 2022 amounts to $83,924,692
(net of accumulated depreciation and amortization). This investment in capital assets
includes land, buildings, vehicles, and equipment. Note 4 gives more details related to capital
and lease assets.
Long-term debt.
State statutes limit the general obligation debt of the District to 50% of
total assessed valuation. At the end of the current fiscal year there was no bonded debt
outstanding nor was there any authorized but unissued debt for the District. Should the
District enter into leases, they would not be general obligations of the District and would be
paid solely from the District’s revenues as appropriated in the annual budget. The District
currently does not have any outstanding debt.
Governmental
Activities
Business Type
Activities
Total
Governmental
Activities
Business Type
Activities
Total
2022
2022
2022
2021
2021
2021
Land
6,406,796
$
2,598,566
$
9,005,362
$
7,367,556
$
2,598,566
$
9,966,122
$
Buildings
49,042,572
2,775,881
51,818,453
49,185,787
3,062,100
52,247,887
Vehicles
12,319,666
—
12,319,666
12,849,211
—
12,849,211
Equipment
5,267,578
280,223
5,547,801
5,886,832
330,230
6,217,062
Construction in Progress
2,001,151
—
2,001,151
—
—
—
Lease Assets
3,232,259
—
3,232,259
1,586,186
—
1,586,186
Total
78,270,022
$
5,654,670
$
83,924,692
$
76,875,572
$
5,990,896
$
82,866,468
$
South Metro Fire Rescue Fire Protection District's Capital and Lease Assets
(Net of Depreciation and Amortization)
21
The District’s long-term liabilities increased during the current fiscal year by approximately
$18.5 million as a result of adding a new warehouse lease liability and OPEB RHS. Because
the District does not have long term financing needs at this time, financial policies related to
long term debt are being evaluated and updated.
Additional information on the District’s long-term obligations can be found in note 7 and
8 on pages 47-48 in the notes section of this report.
Economic Factors and Next Year’s Budgets
Along with the rest of the nation, the District continues to be impacted by the supply chain
disruptions and steep rise in costs due to inflation. The local economy continues to be in a
volatile state with some uncertainty of the future real estate values due to the rising interest
rates. Although probability of a recession has receded.
The District continues to experience legislative initiatives that has the potential to negatively
affect its property tax revenues. Such initiatives are consistently monitored and analyzed as
part of the budget and planning processes. For the budget year 2023, residential assessment
rate was decreased from 7.15% to 6.95%, which resulted in a slight decrease to the property
tax revenues.
Request for Information
This financial report is designed to provide a general overview of South Metro Fire Rescue
Fire Protection District’s finances for all those with an interest in the government’s finances.
Questions concerning any of the information provided in this report or request for additional
financial information should be addressed to the Chief Financial Officer, South Metro Fire
Rescue Fire Protection District, 9195 E. Mineral Avenue, Centennial, CO 80112.
Governmental
Activities
Business Type
Activities
Total
Governmental
Activities
Business Type
Activities
Total
2022
2022
2022
2021
2021
2021
Compensated absences
7,429,077
$
—
$
7,429,077
$
7,285,058
$
—
$
7,285,058
$
Net pension liability
1,665,419
—
1,665,419
2,068,675
—
2,068,675
Lease liability
3,258,042
—
3,258,042
1,592,188
—
1,592,188
OPEB RHS liability
17,078,780
—
17,078,780
—
—
—
29,431,318
$
—
$
29,431,318
$
10,945,921
$
—
$
10,945,921
$
South Metro Fire Rescue Fire Protection District
Long-Term Liabilities
22
BASIC FINANCIAL STATEMENTS
23
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
STATEMENT OF NET POSITION
DECEMBER 31, 2022
The accompanying notes are an integral part of the financial statements.
Governmental
Activities
Business-type
Activities
Total
ASSETS
Cash and investments
46,797,279
$
441,754
$
47,239,033
$
Cash and investments - restricted
5,659,760
—
5,659,760
Receivables (net of allowance for uncollectable)
6,711,636
—
6,711,636
Interest receivable
95,716
—
95,716
Receivable - County Treasurer
124,857,365
—
124,857,365
Prepaid expense
11,147,673
—
11,147,673
Inventories
1,485,988
—
1,485,988
Lease receivable
432,278
2,311,245
2,743,523
Net pension asset
14,917,824
—
14,917,824
Capital assets, not being depreciated:
Land
6,406,796
2,598,566
9,005,362
Construction in progress
2,001,151
—
2,001,151
Capital assets (net of accumulated depreciation):
Building
49,042,572
2,775,881
51,818,453
Vehicles
12,319,666
—
12,319,666
Equipment
5,267,578
280,223
5,547,801
Lease assets, net of amortization
3,232,259
—
3,232,259
Total capital and lease assets
78,270,022
5,654,670
83,924,692
Total assets
290,375,541
8,407,669
298,783,210
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
10,173,610
—
10,173,610
Total deferred outflows of resources
10,173,610
—
10,173,610
LIABILITIES
Accounts and wages payables
6,513,689
27,847
6,541,536
Unearned revenue
1,012,088
—
1,012,088
Long-term liabilities:
Due within one year
Compensated absences
742,908
—
742,908
Medical IBNR liability
1,260,000
—
1,260,000
Lease liability
728,546
—
728,546
OPEB RHS liability
1,398,985
—
1,398,985
Due beyond one year
Compensated absences
6,686,169
—
6,686,169
Net pension liability
1,665,419
—
1,665,419
Lease liability
2,529,496
—
2,529,496
OPEB RHS liability
15,679,795
—
15,679,795
Total liabilities
38,217,095
27,847
38,244,942
DEFERRED INFLOWS OF RESOURCES
Deferred property tax revenue
124,857,365
—
124,857,365
Deferred inflows related to leases
423,184
2,241,946
2,665,130
Deferred inflows related to pensions
9,765,597
—
9,765,597
Deferred inflows related to OPEB RHS
1,874,420
1,874,420
Total deferred inflows of resources
136,920,566
2,241,946
139,162,512
NET POSITION
Net investment in capital and lease assets
74,406,518
5,654,670
80,061,188
Restricted:
Emergency reserve (TABOR)
4,808,356
—
4,808,356
Pension funds
852,733
—
852,733
Net pension asset
14,917,824
—
14,917,824
Excise tax revenue
1,423,170
—
1,423,170
Unrestricted
29,002,889
483,206
29,486,095
Total net position
125,411,490
$
6,137,876
$
131,549,366
$
24
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2022
The accompanying notes are an integral part of the financial statements.
Expenses
Charges for
Services
Operating Grants
and
Contributions
Governmental
Activities
Business Type
Activities
Total
FUNCTIONS/PROGRAMS
Governmental activities
Operations
(123,401,598)
$
12,938,471
$
—
$
(110,463,127)
$
—
$
(110,463,127)
$
Administration
(44,255,426)
2,278,008
167,080
(41,810,338)
—
(41,810,338)
Fire Marshal
(5,513,590)
2,450,898
—
(3,062,692)
—
(3,062,692)
Dispatch
(3,944,869)
121,721
—
(3,823,148)
—
(3,823,148)
Total governmental activities
(177,115,483)
17,789,098
167,080
(159,159,305)
—
(159,159,305)
Business-type activities:
Building rental
(1,020,870)
—
765,319
—
(255,551)
(255,551)
Total business-type activities
(1,020,870)
—
765,319
—
(255,551)
(255,551)
Total government
(178,136,353)
$
17,789,098
$
932,399
$
(159,159,305)
(255,551)
(159,414,856)
125,272,691
—
125,272,691
9,526,233
—
9,526,233
Excise taxes
480,365
—
480,365
6,951,772
—
6,951,772
90,614
—
90,614
Intergovernmental and other reimbursements
1,822,409
—
1,822,409
312,213
—
312,213
532,658
—
532,658
144,988,955
—
144,988,955
(14,170,350)
(255,551)
(14,425,901)
139,581,840
6,393,427
145,975,267
125,411,490
$
6,137,876
$
131,549,366
$
General revenues
Property taxes
Specific ownership tax
Investment income (loss)
Net position -beginning
Medicaid supplemental fee
Net position - ending
Gain on sale of assets
Miscellaneous income
Total general revenues
Change in net position
Net (Expenses) Revenue & Changes in Net Position
Program Revenues
25
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
BALANCE SHEET - GOVERNMENTAL FUNDS
DECEMBER 31, 2022
The accompanying notes are an integral part of the financial statements.
General Fund
Capital Projects
Fund
Non Major -
Cherry Hills
Property Tax
Special Revenue
Fund
Total
Governmental
Funds
ASSETS
Cash and investments
31,470,422
$
13,177,416
$
—
$
44,647,838
$
Cash and investments - restricted
4,808,356
—
851,404
5,659,760
Accounts receivable, net
6,580,885
100,342
1,329
6,682,556
Lease receivable
432,278
—
—
432,278
Interest receivable
95,716
—
—
95,716
Due from Self-Insured Internal Service Fund
52,345
—
—
52,345
Property taxes receivable
124,574,007
—
283,358
124,857,365
Prepaid expense
2,699,756
8,447,917
—
11,147,673
Inventories
1,485,988
—
—
1,485,988
Total assets
172,199,753
$
21,725,675
$
1,136,091
$
195,061,519
$
LIABILITIES
Accounts payable and accrued liabilities
1,742,507
$
605,462
$
—
$
2,347,969
$
Accrued wages
3,421,481
—
—
3,421,481
Unearned revenue
12,088
1,000,000
—
1,012,088
Total liabilities
5,176,076
1,605,462
—
6,781,538
DEFERRED INFLOWS OF RESOURCES
Deferred inflow related to leases
423,184
—
—
423,184
Unavailable property tax revenue
124,574,007
—
283,358
124,857,365
Total deferred inflows of resources
124,997,191
—
283,358
125,280,549
FUND BALANCES
Non-spendable:
Inventory
1,485,988
—
—
1,485,988
Prepaid items
2,699,756
8,447,917
—
11,147,673
Restricted:
Emergency reserve
4,808,356
—
—
4,808,356
Pension funds
—
—
852,733
852,733
Excise tax revenue
—
1,423,170
—
1,423,170
JACC projects
132,951
—
—
132,951
Committed:
Capital Projects Reserve
—
10,249,126
—
10,249,126
Unassigned:
32,899,435
—
—
32,899,435
Total fund balance
42,026,486
20,120,213
852,733
62,999,432
Total liabilities, deferred inflows of resources and
fund balances
172,199,753
$
21,725,675
$
1,136,091
$
78,270,022
14,917,824
Deferred outflows related to pensions
10,173,610
Deferred inflows related to pensions
(9,765,597)
Deferred inflows related to OPEB RHS
(1,874,420)
Compensated absences
(7,429,077)
Lease liability
(3,258,042)
Net pension liability
(1,665,419)
OPEB RHS liability
(17,078,780)
121,937
Net position of governmental activities
125,411,490
$
Long term liabilities that are not due and payable in the current period and therefore are not
reported in these funds:
Capital and lease assets used in governmental activities are not financial resources, and
therefore are not reported in the funds
OF RESOURCES, AND FUND BALANCES
Internal service fund assets and liabilities are reported as governmental-type activities in
the statement of net position
Differences between expected and actual experiences, assumption changes and net
differences between projected and actual earnings and contributions subsequent to the
measurement date for the postretirement benefits are recognized as
deferred outflows of resources and deferred inflows of resources on the statement of net
position.
LIABILITIES, DEFERRED INFLOWS
Amounts reported for governmental activities in the statement of net position are different
b
ecause:
The net pension asset is not available to pay current period expenditures and, therefore, is
not recorded in the funds
26
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2022
The accompanying notes are an integral part of the financial statements.
General Fund
Capital Projects
Fund
Non Major -
Cherry Hills
Property Tax
Special Revenue
Fund
Totals
REVENUES
Property taxes
124,988,592
$
—
$
284,099
$
125,272,691
$
Specific ownership taxes
9,508,226
—
18,007
9,526,233
Excise taxes
—
480,365
—
480,365
Investment income (loss)
(222,190)
262,517
18,116
58,443
Charges for service - transports
12,769,267
—
—
12,769,267
Charges for service - plan review fees
2,450,898
—
—
2,450,898
Medicaid supplemental fee
6,951,772
—
—
6,951,772
Dispatch fees
121,721
—
—
121,721
Intergovernmental and other reimbursements
1,989,489
—
—
1,989,489
Lease rental income
209,514
—
—
209,514
Miscellaneous revenue
312,212
—
—
312,212
Total revenues
159,079,501
742,882
320,222
160,142,605
EXPENDITURES
Public safety
Operations
103,360,737
106,312
—
103,467,049
Administration
37,018,066
2,370,479
221,005
39,609,550
Fire Marshal
5,486,597
—
—
5,486,597
Dispatch
3,930,886
—
—
3,930,886
Debt service lease payments - principal
449,044
103,261
—
552,305
Debt service lease payments - interest
5,291
15,595
—
20,886
Capital outlay
2,054,133
6,535,803
—
8,589,936
Total expenditures
152,304,754
9,131,450
221,005
161,657,209
Excess of Revenues Over (Under) Expenditures
6,774,747
(8,388,568)
99,217
(1,514,604)
OTHER FINANCING SOURCES (USES)
Transfers to other funds
(15,000,000)
—
—
(15,000,000)
Transfers from other funds
—
15,000,000
—
15,000,000
Lease proceeds
194,968
2,042,732
—
2,237,700
Sale of capital assets
1,695,905
—
—
1,695,905
Total other financing sources (uses)
(13,109,127)
17,042,732
—
3,933,605
Net change in fund balances
(6,334,380)
8,654,164
99,217
2,419,001
Fund balances - beginning of year
48,360,866
11,466,049
753,516
60,580,431
Fund balances - end of yea
r
42,026,486
$
20,120,213
$
852,733
$
62,999,432
$
27
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2022
The accompanying notes are an integral part of the financial statements.
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances - Total Governmental Funds
2,419,001
$
Governmental funds report capital outlays as expenditures.
However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives and reported as depreciation or amortization expense.
Cap
i
ta
l
asset a
ddi
t
i
ons
8,589,936
Cap
i
ta
l
asset
di
sposa
l
s
(1,163,247)
Deprec
i
at
i
on expense
(7,678,312)
Lease a
ddi
t
i
ons
2,247,104
Lease
di
sposa
l
s
(19,542)
Amort
i
zat
i
on expense
(581,489)
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Change in liability - compensated absences
(144,019)
Changes in liability, deferred inflow of resources, deferred outflow of
resources - pension
3,312,027
Change in liability - leases
(1,665,854)
C
h
anges
i
n
li
a
bili
ty,
d
e
f
erre
d
i
n
fl
ow o
f
resources,
d
e
f
erre
d
out
fl
ow o
f
resources - OPEB RHS
(18,953,200)
Internal service fund net revenue (expense) is included in the governmental acti
v
(532,755)
Changes in net position of governmental activities
(14,170,350)
$
28
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2022
The accompanying notes are an integral part of the financial statements.
Business Type
Activities - Buildin
g
Rental Fund
Governmental
Activities - Self-
Insured Internal
Service Fund
ASSETS
Current assets:
Cash and investments
441,754
$
2,149,441
$
Receivables (net of allowance for uncollectable)
—
29,080
Lease receivable
2,311,245
—
Total current assets
2,752,999
2,178,521
Capital assets:
Land
2,598,566
—
Buildings
5,924,063
—
Equipment
370,282
—
Less accumulated depreciation
(3,238,241)
—
Total capital assets (net of
accumulated depreciation)
5,654,670
—
Total assets
8,407,669
2,178,521
LIABILITIES
Current liabilities:
Accounts payable
27,847
744,239
Due to General Fund
—
52,345
Medical IBNR liability
—
1,260,000
Total current liabilities
27,847
2,056,584
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to leases
2,241,946
—
Total deferred inflows of resources
2,241,946
—
NET POSITION
Net investment in capital assets
5,654,670
—
Unrestricted
483,206
121,937
Total net position
6,137,876
$
121,937
$
29
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2022
The accompanying notes are an integral part of the financial statements.
Business T
y
pe Activities -
Building Rental Fund
Governmental Activities -
Self-Insured Internal
Service Fund
OPERATING REVENUES
Charges for services
—
$
14,308,641
$
Lease and non-lease component revenue
756,015
—
Lease interest income
9,304
—
Total operating revenues
765,319
14,308,641
OPERATING EXPENSES
Building and grounds maintenance
679,066
—
Depreciation
341,804
—
Medical
—
16,062,887
Total operating expenses
1,020,870
16,062,887
Operating loss
(255,551)
(1,754,246)
NONOPERATING INCOME
Investment income
—
32,171
Miscellaneous
—
539,046
Stop loss refunds
—
650,274
Total nonoperating income
—
1,221,491
Change in net position
(255,551)
(532,755)
Total net position
- beginning of year
6,393,427
654,692
Total net position - end of yea
r
6,137,876
$
121,937
$
30
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2022
The accompanying notes are an integral part of the financial statements.
Business Type Activities -
Building Rental Fund
Governmental Activities -
Self-Insured Internal
Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users
732,878
$
—
$
Receipts from interfund services provided
—
14,308,641
Payments for interfund services provided
—
(15,337,950)
Payments to suppliers
(787,232)
—
Stop loss refunds
—
650,274
Miscellaneous
—
539,046
Net cash provided (used) b
y
operatin
g
activities
(54,354)
160,011
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Capital purchases
(5,578)
—
Net cash provided by capital and related financing activities
(5,578)
—
—
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
—
32,171
Net cash provided (used) b
y
investin
g
activities
—
32,171
Net increase (decrease) in cash and cash equivalents
(59,932)
192,182
Cash and cash equivalents, January 1
501,686
1,957,259
Cash and cash equivalents, December 31
441,754
$
2,149,441
$
Reconciliation of operating loss to net cash provided (used) by operating
activities:
Operating loss
(255,551)
$
(1,754,246)
$
Adjustments to reconcile operating loss to net cash provided (used) by
operating activities:
Depreciation expense
341,804
—
Nonoperating revenues
—
1,189,320
Increase (decrease) in:
Accounts receivable and lease receivable
515,657
(23,153)
Deferred inflows related to leases
(548,096)
Prepaid expense
5,387
—
Increase (decrease) in:
Accounts payable
(113,555)
748,090
Total adjustments
201,197
1,914,257
Net cash provided (used) by operating activities
(54,354)
$
160,011
$
Reconciliation of cash and cash equivalents to statement of net position:
Unrestricted cash and cash equivalents
441,754
$
2,149,441
$
Total cash and investments
441,754
$
2,149,441
$
31
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Definition of Reporting Entity
South Metro Fire Rescue Fire Protection District was legally established on December 14,
2015. The District was formerly operating in an Authority model established on November
16, 2017 by the Creation and Pre-Unification Agreement, whereby South Metro Fire Rescue
Fire Protection District and Cunningham Fire Protection District (CFPD) agreed to integrate
all aspects of their operations, administration, and services through the formation of a
separate legal entity pursuant to §29-1-203(4), C.R.S. Prior to the Authority, South Metro
Fire Rescue Fire Protection District was created on April 24, 2008, by the Creation and Pre-
Inclusion Agreement, as amended, whereby Parker Fire Protection District and South Metro
Fire Rescue agreed to unify all operations. On January 1, 2019 the Authority included areas
formerly serviced by the City of Littleton (Littleton Fire) into the service area. All Littleton
Fire employees formerly employed by the City of Littleton became Authority employees
along with all assets and liabilities. On January 1, 2020, the entity started operating as South
Metro Fire Rescue Fire Protection District.
The District is governed, pursuant to provisions of the Colorado Special District Act, by a
seven member Board of Directors.
The District's Fire Chief has all powers and authorities
provided for a fire chief under §32-1- 1002, C.R.S., and oversees and manages all business
and affairs of the District, including the operation, maintenance, management,
administration, and provision of all facilities, improvements, equipment, services and
personnel.
The District's service areas are located in Douglas, Arapahoe and Jefferson
Counties, Colorado. The District was established to provide fire protection and paramedic
rescue services.
The District follows the Governmental Accounting Standards Board (GASB) accounting
pronouncements which provide guidance for determining which governmental activities,
organizations and functions should be included within the financial reporting entity. GASB
pronouncements set forth the financial accountability of a governmental organization’s
elected governing body as the basic criterion for including a possible component
governmental organization in a primary government’s legal entity. Financial accountability
includes, but is not limited to, appointment of a voting majority of the organization’s
governing body, ability to impose its will on the organization, a potential for the organization
to provide specific financial benefits or burdens and fiscal dependency.
The District is not financially accountable for any other organization, nor is the District a
component unit of any other primary governmental entity.
The more significant accounting policies of the District are described below.
32
Government-wide and Fund Financial Statements
The government-wide financial statements include the statement of net position and the
statement of activities.
Both statements distinguish between governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, and which rely to a significant extent on fees and charges for
support.
The statement of net position reports all financial and capital resources of the District.
The
difference between the sum of assets and deferred outflows of resources and the sum of
liabilities and deferred inflows of resources of the District is reported as net position.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for the governmental funds and proprietary funds.
Major and non-major individual governmental funds are reported as separate columns in the
fund financial statements.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements.
Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of related cash flows.
Grants and similar items are
recognized as revenues as soon as all eligibility requirements imposed by the provider have
been met.
Depreciation and amortization are computed and recorded as an operating
expense.
Expenditures for property, apparatus, equipment and infrastructure are shown as
increases in assets.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting.
Revenues are recognized
as soon as they are both measurable and available.
Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period.
For this purpose, the District considers revenues other than emergency
medical service fees to be available if they are collected within 60 days following the end of
the current fiscal period.
Emergency medical service fees are considered available if they are
collected within 6 months of the end of the current fiscal period. The major sources of
revenues susceptible to accrual are property taxes, specific ownership taxes, permit fees and
33
emergency medical service fees.
All other revenue items are considered to be measurable
and available only when incurred by the District. Expenditures are recorded when the
liability is incurred.
The District reports the following major governmental funds:
•
The General Fund is the District's primary operating fund. It is used to account for all
financial resources except those required to be accounted for in other funds.
•
The Capital Projects Fund is used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed in the
proprietary fund types).
Non-major:
•
The Cherry Hills Property Tax Special Revenue Fund is used to collect the property
tax receipts from the former Cherry Hills Fire Protection District in order to fund the
Cherry Hills Old Hire Pension. The fund is not accumulating assets to pay retirees,
but it collects money to fund the employer contribution that it sends to FPPA
annually. As part of the inclusion of the Cherry Hills Fire Protection District into
South Metro Fire Rescue, the District was allowed to assess a mill levy to provide for
the pensions of the employees of the Cherry Hills Fire Protection District who had
already retired and belonged to this defined benefit pension plan. This mill levy can
only be used for contributions to that pension plan. The mill levy may be decreased
as the financial requirements of the plan decrease.
The District reports the following major proprietary funds:
Enterprise Fund:
•
The Building Rental Fund provides for the maintenance of the administration
headquarters which is also rented or leased to outside governments on both the state
and federal level.
In addition, the District reports the following Internal Service Fund as non-major.
Internal Service Fund:
•
The SMFR Medical Self-Insured Fund collects the District and employee medical
premiums. The funds are used to pay for medical claims of the insured, Stop Loss
Insurance, and administration fees to the third-party administrator.
As a general rule, the effect of interfund activity has been eliminated from the government-
wide financial statements.
Exceptions of this general rule include elimination of charges that
would distort the direct costs and program revenues for functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
34
delivering goods in connection with a proprietary fund's principal ongoing operations.
Operating revenues consist of charges to customers for service provided.
Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses,
and depreciation of capital assets.
All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses or capital contributions.
SMFR participants in pension plans administered by the Fire and Police Association of
Colorado (FPPA) for the purposes of measuring the net pension liability (asset) and deferred
outflows/inflows of resources related to pensions, and pension expense, information about
the fiduciary net position of the (FPPA) plans and additions to/deductions from the Plans’
fiduciary net position have been determined on the same basis as they are reported by FPPA.
For this purpose, benefit payments are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value.
When both restricted and unrestricted resources are available for use, it is the District’s
policy to use restricted resources first, then unrestricted resources as needed.
Budgets
In accordance with State Budget Law, the Board holds public hearings in the fall each year to
approve the budget and appropriate the funds for the ensuing year.
Annual budgets are
adopted on a basis consistent with GAAP for all governmental, enterprise and internal
service funds. The appropriation is at the total fund expenditures level and lapses at year end.
The Board can modify the budget by line item within the total appropriation without
notification.
The appropriation can only be modified upon completion of notification and
publication requirements.
Unused appropriations lapse at the end of the fiscal year.
Pooled Cash and Investments
The District follows the practice of pooling cash and investments of all funds to maximize
investment earnings.
Except when required by trust or other agreements, all cash is
deposited to and disbursed from pooled bank accounts.
Cash in excess of immediate
operating requirements is pooled for deposit and investment flexibility.
Investment earnings
are allocated periodically to the participating funds based upon each fund's average equity
balance in the total cash and investments.
Investments are carried at fair value except for local government investment pools and the
affiliated local plan pool which are reported at the net asset value per share which is
determined based upon how the fund is valued (i.e. fair value or amortized cost). Investment
income includes increases and decreases in the fair value of investments. Changes in fair
value during the year do not necessarily represent trends that will continue; nor is it always
possible to realize such amounts, especially in the case of temporary changes in the fair value
of investments that the government intends to hold to maturity.
35
Cash Equivalents
For purposes of the statement of cash flows, the District considers cash deposits and highly
liquid investments (including restricted assets) with a maturity of three months or less when
purchased, to be cash equivalents.
Capital and Lease Assets
Capital and lease assets, which include property, equipment and infrastructure assets are
reported in the applicable governmental or business type activities columns in the
government-wide financial statements. Capital assets are defined by the District as assets
with an initial, individual cost of more than $5,000 and an estimated useful life greater than
one year. Such assets are recorded at historical cost or estimated historical cost if purchased
or constructed. Donated capital assets, donated works of art or similar items, and capital
assets received in a service concession arrangement are recorded at acquisition value at the
date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Improvements are capitalized and
depreciated over the remaining useful lives of the related capital assets, as applicable.
Depreciation and amortization expense have been computed using the straight-line method
over the estimated economic useful lives:
Assets
Years
Buildings
30-50
Building Improvements
7-20
Ambulances
5-12
Fire Apparatus
9-10
Staff Vehicles
3-5
Equipment
5-7
Lease Assets
*
*The shorter of the lease or useful life.
Compensated Absences
The District has a policy that allows employees to accumulate unused vacation and sick
leave benefits and compensatory time up to certain maximum hours. The District has
implemented a benefit to pay a portion of unused leave based on years of service upon
termination. A long-term liability has been recorded in the government-wide and financial
statements.
36
Property Taxes
Property taxes are levied by the District's Board of Directors. The levy is based on assessed
valuations determined by the County Assessors generally as of January 1 of each year. The
levy is normally set by December 15 by certification to the County Commissioners to put the
tax lien on the individual properties as of January 1 of the following year. The County
Treasurers collect the determined taxes during the ensuing calendar year. The taxes are
payable by April or if in equal installments, at the taxpayers’ election, in February and June.
Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent
properties are held in November or December. The County Treasurers remit the taxes
collected monthly to the District.
Property taxes are recorded initially as deferred inflows of resources in the year they are
levied and measurable. The deferred inflow is then recorded as revenue in the year they are
available or collected.
Accounts Receivable, Allowance for Uncollectable Accounts
All trade accounts receivables are shown net of an allowance for uncollectible accounts. In
the General Fund, a portion of the ambulance transport related trade accounts receivable
balance comprises the allowance for uncollectable accounts. Analysis is performed annually
to determine this amount deemed uncollectible.
Inventories
Inventories are valued at cost using the first-in, first-out method. Inventories in the General
Fund consist of expendable supplies held for consumption, medical supplies, vehicle parts
and uniforms. The cost is recorded as expenditures at the time individual inventory items are
consumed.
Prepaid Expense
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The
cost of prepaid items are recorded as expenditures/expenses when consumed rather than
when purchased.
The District considers items to be prepayments when payment is made for
services and/or goods delivered in future periods and the amount of the payment is more than
$10,000. Items less than $10,000 are expensed when purchased.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element,
deferred
37
outflows of resources
, represents a consumption of net assets that applies to a future period(s)
and so will not be recognized as an outflow of resources (expense/expenditure) until then.
The District has one item that qualifies for reporting in this category which is shown as
pension-related amounts that includes items related to the District's portion of the Colorado
Fire and Police Pension Association (FPPA) benefit plans.
This includes the difference
between expected and actual experience, any changes of assumptions or other inputs, the net
difference between projected and actual investment earnings on pension plan investments,
and the related contributions subsequent to the measurement date, but before the end of the
fiscal year and changes in proportion since the prior measurement dates (See Note 12).
In addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources.
This separate financial statement element,
deferred
inflows of resources,
represents an acquisition of net assets that applies to a future period and
so will
not
be recognized as an inflow of resources (revenue) until that time.
The District has
four items that qualify for reporting in this category.
Deferred inflows related to leases is
measured at the value of the lease receivable plus any payments received at or before the
commencement of the lease term that relate to future periods. The District also has deferred
inflows related to pensions and OPEB. For additional information refer to Note 12 in the
notes section of this report. The governmental funds report deferred revenue from property
taxes. These amounts are deferred and recognized as an inflow of resources in the period the
amounts are received by the District.
Fund Balance
Fund balance for governmental funds should be reported in classifications that comprise a
hierarchy based on the extent to which the government is bound to honor constraints on the
specific purposes for which spending can occur.
Governmental funds report up to five
classifications of fund balance: nonspendable, restricted, committed, assigned, and
unassigned.
Because circumstances differ among governments, not every government or
every governmental fund will present all of these components. The following classifications
describe the relative strength of the spending constraints:
Nonspendable fund balance –
The portion of fund balance that cannot be spent
because it is either not in spendable form (such as prepaid amounts or inventory) or
legally or contractually required to be maintained intact.
Restricted fund balance –
The portion of fund balance that is constrained to being
used for a specific purpose by external parties (such as bondholders), constitutional
provisions, or enabling legislation.
Committed fund balance –
The portion of fund balance that can only be used for
specific purposes pursuant to constraints imposed by formal action of the
government’s highest level of decision-making authority, the Board of Directors. The
constraint may be removed or changed only through formal action of the Board.
The
Board will either pass an ordinance or resolution as the highest level of decision
making dependent on the subject matter.
38
Assigned fund balance –
The portion of fund balance that is constrained by the
government’s intent to be used for specific purposes but is neither restricted nor
committed. Intent is expressed by the Board to be used for a specific purpose.
Constraints imposed on the use of assigned amounts are more easily removed or
modified than those imposed on amounts that are classified as committed.
Unassigned fund balance operating reserve
– The residual portion of fund balance
that does not meet any of the criteria described above. The District has adopted a
policy to maintain a fund balance of 20% of budgeted general fund expenditures as
an operating reserve. This reserve is intended to be used in limited circumstances for
one-time use when deemed appropriate and necessary. Uses may include providing
temporary resources in times of economic downturn, unexpected events such as
natural disasters or accidents, strategic expenditures or one-time capital outlay
expenses.
If more than one classification of fund balance is available for use when an expenditure is
incurred, it is the District’s policy to use the most restrictive classification first.
Net Position
Net position represents the difference between assets and deferred outflow of resources and
liabilities and deferred inflow of resources.
Net investment in capital and lease assets
consists of capital and lease assets, net of accumulated depreciation/amortization, reduced by
the outstanding balance of any borrowing used for the acquisition, construction or
improvements of those assets.
Net position is reported as restricted when there are
limitations imposed on their use through external restrictions imposed by creditors, grantors,
laws, or regulations of other governments, or imposed by law through constitutional
provisions or enabling legislation that are legally enforceable.
NOTE 2 - CASH AND INVESTMENTS
Cash and investments as of December 31, 2022 are as follow:
Cash and Investments
Governmental
Activities
Business-T
y
pe
Activities
Total
Cash and cash equivalents
$
31,220,230
$
441,754
$
31,661,984
Investments
15,577,049
-
15,577,049
Restricted investments
5,659,760
-
5,659,760
Total cash and investments
$
52,457,039
$
441,754
$
52,898,793
39
Deposits with Financial Institutions
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local
government deposit cash in eligible public depositories. State regulators determine eligibility.
Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible
collateral is determined by the PDPA.
PDPA allows the institution to create a single
collateral pool for all public funds.
The pool for all the uninsured public deposits as a group
is to be maintained by another institution or held in trust.
The fair value of the collateral
must be equal to 102% of the aggregate uninsured deposits to secure uninsured public funds
on deposit with the banks. Thus, the PDPA provides protection of public deposits beyond
FDIC insurance.
The State Commissioners for banks and financial services are required by statute to monitor
the naming of eligible depositories and reporting of the uninsured deposits and assets
maintained in the collateral pools.
As of December 31, 2022, all of the District's deposits were either insured by the Federal
Deposit Insurance Corporation or held in eligible public depositories as required by PDPA.
Investments
Colorado Revised Statutes specify investment instruments meeting defined rating and risk
criteria in which local government entities may invest. The allowed investments include local
government investment pools.
Colorado statutes specify investment instruments meeting defined rating and risk criteria in
which local governments may invest which include:
•
Obligations of the United States, certain U.S. government agency securities, and
securities of the World Bank
•
General obligation and revenue bonds of U.S. local governmental entities
•
Certain certificates of participation
•
Certain securities lending agreements
•
Bankers' acceptances of certain banks
•
Commercial paper
•
Written repurchase agreements and certain reverse repurchase agreements
collateralized by certain authorized securities
•
Certain money market funds
•
Guaranteed investment contracts
•
Local government investment pools
The District has additional investments under the management of asset management firms:
Chandler Asset Management (Chandler) and PFM Asset Management LLC (PFM). The
individual securities are held in the name of the District by a third party custodian.
40
The District’s categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the
valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices
in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. Investments not measured at fair value
and not categorized include governmental money market funds (Chandler and PFM); money
market funds (generally held by Bank Trust Departments in their role as paying agent or
trustee).
Level 2 investment values are derived from associated traded securities as reported
by the District’s asset management firms. Equity and equity derivative securities classified in
Level 2 are securities whose values are derived daily from associated traded securities. Fixed
income securities and derivatives within all asset classes that are classified in Level 2 are
valued using either a bid evaluation, matrix pricing or various relational pricing model
techniques. Level 2 fixed income securities have non-proprietary information that was
readily available to market participants, from multiple independent sources, which are
known to be actively involved in the market.
The District does not have recurring fair value measurements as of December 31, 2022, that
are valued using quoted prices in active markets for identical assets (Level 1) or significant
unobservable inputs (Level 3).
*Money Market Funds of $14,197 and Local Government Investment Pool (LGIP) of $8,748 are not
categorized within the fair value hierarchy.**
** Money Market Funds and LGIP are considered cash equivalents for financial statement presentation
.
As of December 31, 2022, the District had the following investments in a Chandler Asset
Management externally managed investment portfolio. This portfolio is managed by the
investment manager at their discretion.
Modified duration is shown in years.
As of December 31, 2022, the District had the following investments in a third managed
portfolio managed by PFM Asset Management LLC.
Modified duration is shown in years.
Investment
Level 1
Level 2
Level 3
Net Asset Value
(NAV)
Total
CSIP**
-
$
-
$
-
$
29,338,748
$
29,338,748
$
Chandler
-
8,009,874
-
-
8,009,874
PFM
-
13,226,935
-
-
13,226,935
Total*
-
$
21,236,809
$
-
$
29,338,748
$
50,575,557
$
Modified
S&P/Moody’s
Investment
Fair Value
Duration
Rating
US Treasuries
4,775,958
$
2.30
Aaa/AAA
US Agencies
2,845,600
0.81
Aaa/AAA
Corporate Bonds
388,316
2.41
AA+/Aa1
Money Market Fund
14,197
—
Aaa/AAA
Total Fair Value
8,024,071
$
1.84
41
Local Government Investment Pools –
As of December 31, 2022, the District had
funds
invested in local government investment pools which are rated AAA.
CSIP:
The District invested in the Colorado Statewide Investment Program (CSIP),
an investment vehicle established for local government entities in Colorado to pool
surplus funds. CSIP Liquid Portfolio is managed by PFM Asset Management LLC
(PFMAM), a subsidiary of U.S. Bancorp Asset Management, Inc. As the fund's
investment adviser and administrator, PFMAM is responsible for the purchase and
sale of all portfolio assets. PFMAM is registered with the SEC under the Investment
Advisers Act of 1940 and specializes in creating investment strategies and managing
funds for public sector, not-for-profit and other institutional clients
.
CSIP offers a
fully liquid, variable rate investment option known as the CSIP Liquid Portfolio, and
the ability for participants to invest in shares of fixed-rate, fixed-term investments
through the CSIP Term Portfolio. Investments in the CSIP portfolios seek to comply
with those authorized under 24-75-601 et. seq. of the Colorado Revised Statutes.
Both the CSIP Liquid Portfolio and the Term Portfolio can be utilized for many types
of government funds including general funds, operating funds, bond proceeds, debt
service funds, operating reserves and debt service reserve funds. A short-term
portfolio rated AAAm by Standard & Poor's and AAAmmf by Fitch Ratings.
•
The money market fund of the PFM managed account is the Colorado Statewide
Investment Program (CSIP) and is rated AAAm. As an investment pool these firms
operate under the Colorado Revised Statutes (24-75-701) and are overseen by the
Colorado Securities Commissioner. They invest in securities that are specified by the
Colorado Revised Statutes (24-75-601). Authorized securities include U.S.
Treasuries, U.S. Agencies, commercial paper (rated A1or better) and bank deposits
(collateralized through PDPA). They operate similar to a money market fund with a
share value equal to $1.00. CSIP doesn’t have any redemption restrictions.
Interest Rate Risk
: Through its investment policy the District manages its exposure
to fair
value losses arising from increasing interest rates by limiting the modified duration of the
managed portfolio to less than 3 years. It is expected that these funds are excess funds and
that the District will provide for short term needs from funds invested in the state pools. The
government investment pools operate similar to a money market fund. Therefore, no
disclosure is required.
Modified
S&P/Moody’s
Investment
Fair Value
Duration
Rating
US Treasuries
5,729,527
$
2.86
AA+/Aaa
US Agencies
2,199,407
1.73
AA+/Aaa
Municipal Bonds
2,436,489
1.8
AAA/Aa1
Certificates of Deposit
138,448
2.65
AA+/Aa2
Supranational Bonds
1,986,449
2.57
AAA/Aaa
Corporate Notes
736,615
2.02
AA+/Aa2
LGIP
8,748
—
AAAm
Total Fair Value
13,235,683
$
2.27
42
Credit Risk
: The District’s investment policy applies the prudent-person rule:
Investments are
made as a prudent person would be expected to act, with discretion and intelligence, to seek
reasonable income, preserve capital, and, in general, avoid speculative investments. The
District’s investment policy limits investments in corporate bonds to the top three ratings
issued by nationally recognized statistical rating organizations and they must be rated by at
least two such organizations. Generally, credit risk is the risk that an issuer of an investment
will not fulfill its obligation to the holder of the investment. This is measured by the
assignment of a rating by a nationally recognized statistical rating organization. The
District’s direct investment in bank CD’s must be rated Excellent or better to be covered by
FDIC insurance.
Concentration of risk.
The District’s investment policy does not allow for an
investment in
any one issuer that is in excess of five percent of the government’s total investments.
External investment pools are excluded from the five percent disclosure requirement.
Custodial credit risk.
In the case of deposits, this is the risk that in the
event of bank failure,
the District’s deposits may not be returned to it. The District has no deposit policy for
custodial risk because the District’s deposits are covered under the Public Deposit Protection
Act.
NOTE 3 - RECEIVABLES
Receivables as of the year end for the District’s individual major funds, including the
applicable allowance for uncollectible accounts in the amount of $3 million, are as follows:
Governmental funds report deferred inflows of resources in connection with receivables for
revenues that are not considered to be available to liquidate liabilities of the current period.
General Fund
Capital Projects
Non Major -
Cherry Hills
Property Tax
Special Revenue
Fund
Self-Insured
Internal Service
Fund
Total
Governmental
Activities
Accounts, net
6,580,885
$
100,342
$
1,329
$
29,080
$
6,711,636
$
Lease
432,278
—
—
—
432,278
Taxes
124,574,007
—
283,358
—
124,857,365
Interest
95,716
—
—
—
95,716
Total Receivables
131,682,886
$
100,342
$
284,687
$
29,080
$
132,096,995
$
Total
Total
Business-Type
All
Funds
Funds
Accounts, net
—
$
—
$
6,711,636
$
Lease
2,311,245
2,311,245
2,743,523
Taxes
—
—
124,857,365
Interest
—
—
95,716
Total Receivables
2,311,245
$
2,311,245
$
134,408,240
$
Building Rental
Fund
43
At the end of the current fiscal year, the various components of unavailable revenue reported
in the governmental funds were as follows:
124,574,007
$
283,358
124,857,365
$
Cherry Hills Property taxes receivable (Special Revenue Fund)
Property Tax Revenue
General Fund Property taxes receivable
44
NOTE 4 - CAPITAL ASSETS
Beginning
Ending
Governmental Activities:
Balance
Increases
Decreases
Balance
Capital assets, not being depreciated:
Land
7,367,556
$
—
$
960,760
$
6,406,796
$
Construction in progress
—
2,001,151
—
2,001,151
Total capital assets, not being depreciated
7,367,556
2,001,151
960,760
8,407,947
Capital assets, being depreciated:
Buildings
77,115,534
1,968,997
—
79,084,531
Vehicles
41,845,073
2,662,509
443,158
44,064,424
Equipment
15,042,573
1,957,279
807,152
16,192,700
Total capital assets, being depreciated
134,003,180
6,588,785
1,250,310
139,341,655
Less accumulated depreciation for:
Buildings
(27,929,747)
(2,112,212)
—
(30,041,959)
Vehicles
(28,995,862)
(3,192,054)
(443,158)
(31,744,758)
Equipment
(9,155,741)
(2,374,046)
(604,665)
(10,925,122)
Total accumulated depreciation
(66,081,350)
(7,678,312)
(1,047,823)
(72,711,839)
Total capital assets, being depreciated, net
67,921,830
(1,089,527)
202,487
66,629,816
Governmental activities capital assets, net
75,289,386
911,624
1,163,247
75,037,763
Beginning
Ending
Business-type activities:
Balance
Increases
Decreases
Balance
Capital assets, not being depreciated:
Land
2,598,566
—
—
2,598,566
Total capital assets, not being depreciated
2,598,566
—
—
2,598,566
Capital assets, being depreciated:
Buildings
5,924,063
—
—
5,924,063
Equipment
364,704
5,578
—
370,282
Total capital assets, being depreciated
6,288,767
5,578
—
6,294,345
Less accumulated depreciation for:
Buildings
(2,861,963)
(286,219)
—
(3,148,182)
Equipment
(34,474)
(55,585)
—
(90,059)
Total accumulated depreciation
(2,896,437)
(341,804)
—
(3,238,241)
Total capital assets, being depreciated, net
3,392,330
(336,226)
—
3,056,104
Business-type activities capital assets, net
5,990,896
$
(336,226)
$
—
$
5,654,670
$
45
Depreciation expense was charged to functions, programs of the primary government as
follows:
NOTE 5 - INTERFUND TRANSFERS AND BALANCES
The transfer from the General Fund to the Capital Projects fund is to cover capital
expenditures.
Transfers between funds during 2022 were as follows:
Interfund receivable and payable balances arise due to short-term cash flow needs. At
December 31, 2022, the balances are as follows:
Governmental activities:
Operations
1,200,304
$
Administration
6,363,403
Dispatch
114,605
Total depreciation expense - governmental activities
7,678,312
$
Business-type activities:
Building Rental
341,804
$
Total depreciation expense - business-type activities
341,804
$
Capital Projects
Fund
Total Transfers
Transfer Out:
General Fund
15,000,000
$
15,000,000
$
Total Transfers Out
15,000,000
$
15,000,000
$
Trabsfers In:
Due From:
Due to:
Self-Insured
Internal Service
Fund
General Fund
52,345
$
Total
52,345
$
46
NOTE 6 – LEASES
Lessee
The District leases real estate, copy machines, staff vehicles, and EMS power loads under
annually cancelable leases. The total lease payments in 2022 were $592,596, including
$571,846 in principal payments, $18,530 in interest payments, and $2,220 in other charges
not included in lease liability.
Lease Assets
Lease asset activity for the year ended December 31, 2022, was as follows:
Lease Liabilities
The following is a summary of changes in lease liabilities of the District for the year
ended December 31, 2022:
Future Lease Payments
The future lease payments for all leases discussed above are expected to be paid as
follows
:
Lease Assets:
Balance
January 1, 2022
Additions
Deletions
Balance
December 31,
2022
Vehicles
1,858,011
$
201,271
$
48,971
$
2,010,311
$
Real
Estate
-
2,042,732
-
2,042,732
Copiers
182,991
3,101
-
186,092
Total Lease Assets, Being Amortized
2,041,002
2,247,104
48,971
4,239,135
Less accumulated amortization:
Vehicles
451,714
388,564
29,429
810,849
Real
Estate
-
121,591
-
121,591
Copiers
3,102
71,334
-
74,436
Total Accumulated Amortization:
454,816
581,489
29,429
1,006,876
Total Lease Assets, Net
1,586,186
$
1,665,615
$
19,542
$
3,232,259
$
Leases
Balance
January 1, 2022
Additions
Deletions
December 31,
2022
Due Within
One Year
Vehicles
1,443,047
$
194,968
$
431,501
$
1,206,514
$
436,619
$
Real
Estate
-
2,042,732
103,261
1,939,471
254,709
Copiers
149,141
-
37,084
112,057
37,218
Total
1,592,188
$
2,237,700
$
571,846
$
3,258,042
$
728,546
$
Maturity Analysis
Principal
Interest
Total
2023
728,546
40,713
769,259
2024
719,970
33,585
753,556
2025
594,824
26,348
621,172
2026
339,608
19,806
359,414
2027
349,860
13,382
363,242
2028
‐
2032
525,234
8,277
533,511
Total
3,258,042
142,111
3,400,153
Lease Liability
3,258,042
47
Lessor
Government-Wide Activities
The District leases space in five of its buildings and on its communication tower to four cell
phone wireless companies. The communications tower has space leased to one neighboring
fire district, a Communications District in a nearby county, and a school district for
placement of antennas. In 2022, total receipts for renting this space was $209,514. Lease
revenue was $207,495 and lease interest revenue was $2,019.
The primary function of the building rental fund is the leasing of office space. The
District leases a portion of its administrative building and the minimum anticipated
receipts for the next five years are as follows:
Future Lease Receipts for Business-Type Activities
The District leases a portion of its administrative building, and in 2022 total receipts of
renting this space was $765,319. Lease revenue was $564,339, non-lease component revenue
was $191,676 and lease interest revenue was $9,304.
The future lease receipts for Business-Type leases are expected to be as follows:
NOTE 7 - GENERAL OBLIGATION DEBT
The District does not have any general obligation debt outstanding and has no
authorization for issuing general obligation debt.
NOTE 8 - CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2022 was as follows:
Maturity Analysis
Revenue
Interest
Total
2023
538,104
7,529
476,334
2024
468,805
5,798
474,603
2025
468,805
4,061
472,866
2026
468,805
2,318
471,122
2027
366,727
592
367,319
Total
2,311,245
20,298
2,262,244
Lease receivable
2,311,245
48
The General Fund will typically be used to liquidate these liabilities.
NOTE 9 - TAX ABATEMENTS
In accordance with GASB Statement No. 77, the District has disclosed all agreements
entered into with other entities that involve property tax abatements. It is important to note
that the District has not directly entered into any abatement agreements.
The terms of the
agreements and payment amounts as of December 31, 2022 are detailed as follows:
The Town of Parker approved the creation of the Parker Authority for Reinvestment (the
URA) that in turn adopted three urban renewal plans, namely the Parker Road Plan, Parker
Central Plan and Cottonwood Plan that are within the District's boundaries.
The creation of
the URA allows for Tax Increment Financing (TIF) as described under section 31-25-101 of
the Colorado Revised Statutes.
The URA has retained all property taxes categorized as TIF
within the designated areas and has not entered into any agreement to share those revenues
with the District.
As a result, $741,273 of property tax revenue was diverted from the
District during the year ending December 31, 2022. The total TIF amounts are outlined
below:
NOTE 10 - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, or
destruction of assets; errors and omissions; injuries to employees; or acts of God.
The
District is a member of the Colorado Special District Property and Liability Pool (Pool) as of
December 31, 2022.
The Pool is an organization created by intergovernmental agreement to
provide workers compensation coverage to its members.
The District pays annual premiums to the Pool for workers compensation coverage.
In the
event aggregated losses incurred by the Pool exceed amounts recoverable from reinsurance
contracts and funds accumulated by the Pool, the Pool may require additional contributions
from the Pool members. Any excess funds which the Pool determines are not needed for
purposes of the Pool may be returned to the members pursuant to a distribution formula.
The District provides health benefits to employees through the SMFR Medical Self-Insured
Fund that is reported as an Internal Service Fund. The SMFR Medical Self-Insured Fund
collects the District and employee medical premiums. The funds are used to pay for the Stop
Beginning
Balance
Additions
Retirements
Ending Balance
Due within one
year
Governmental Activities:
Compensated Absences
7,285,058
$
1,320,614
$
1,176,595
$
7,429,077
$
742,908
$
Net pension liability
2,068,675
—
403,256
1,665,419
—
Lease liability
1,592,188
2,237,700
571,846
3,258,042
728,546
OPEB RHS liability
17,855,709
—
776,929
17,078,780
1,398,985
Long-Term Liabilities
28,801,630
$
3,558,314
$
2,928,626
$
29,431,318
$
2,870,439
$
Prior Years
2022
Total TIF
$
1,568,366
741,273
$
49
Loss Insurance, administration fees to the third-party administrator and to medical claims of
the insured.
The District also pays annual premiums to McNeil & Company for property and liability
insurance.
NOTE 11 - RELATED PARTY TRANSACTIONS
South Metro Safety Foundation
The District provides services for South Metro Safety Foundation, which is a non-profit
corporation 501(c)3, formed through a donation received in 1992. The Foundation provides
community training in First Aid, CPR, babysitting classes and teen driving among other
things. One member of the District Board sits on the Foundation Board, as well as, one
employee.
Related party transactions
In 2022, four employees were paid a total of $12,567 for services performed.
The services
performed were related to embroidery and leather work for equipment used in the operations
of the District.
Additionally, the District conducted transactions totaling $33,854 with two companies that
were considered related parties of the District either because the district employee’s family
owned the company or the District employee worked for the company.
The District feels
these transactions are priced competitively and are accurately characterized as “arm’s length”
transactions.
NOTE 12 – PENSION AND OTHER POST EMPLOYMENT BENEFITS
Defined Contribution Benefit Plans
1)
Paid Firefighters and Administration Plan
The District contributes to the South Metro Fire Rescue 401(a) Plan, a defined contribution
pension plan, for all of its full-time and permanent part-time employees. The plan is
administered by Voya Financial.
Benefit terms, including contribution requirements, for the Plan are established by the Board
of Directors. State statutes require the District to contribute at least 8% to the firefighter
pension plan. The District currently contributes 12% of base pay for all employees to the
pension plan. The employees, also, contribute 12% of base pay. For the year ended
December 31, 2022 the District contributed and recognized as expense $7,154,106 and
employees contributed a total of $7,153,025.
50
Employees are immediately vested in their own contributions and become vested in the
District contributions over 3 years. Thirty-three and one third percent is vested each year so
that at the end of 3 years they are fully vested. Non-vested District contributions are forfeited
upon termination of employment. Forfeitures can be used to decrease District contributions.
Forfeitures totaling $254,994 were returned to the plan during 2022.
Defined Benefit Plans
The Fire and Police Pension Association of Colorado (FPPA) administers a statewide
multiple-employer public employee retirement system providing defined benefit plan
coverage for police officers and firefighters throughout the State of Colorado. The Affiliated
Local Plans are plans for which FPPA has been asked to and has undertaken investment and
recordkeeping responsibility but are not plans for which FPPA has determined or set the
benefits or set the funding policy. Volunteer Plans that have chosen to affiliate with FPPA for
investment and administrative purposes are still governed by their local plan document or by
the Colorado statutes and local pension board, each has a separate actuarial valuation
completed every two years.
The District contributes to the Statewide Defined Benefit Plan (SWDB) and Statewide
Hybrid Plan (SWH), cost-sharing multiple-employer defined benefit pension plans
administered by FPPA. Some of the employees from former Cunningham Fire Protection
District participate in the SWDB and some of the employees from former Littleton Fire
Rescue participate in both SWDB and SWH. The unification with Cunningham Fire Rescue
occurred on January 1, 2018 and the unification with Littleton Fire Rescue occurred on
January 1, 2019. Newly hired employees are not eligible to participate in the SWDB or
SWH plans.
In addition, the District has affiliated with FPPA for the administration of its old hire and
volunteer plans that have occurred through mergers or name changes over the years. There
are a total of three such plans which include Parker Fire Protection District Volunteer Plan,
South Metro Fire Rescue Volunteer Plan, and Cherry Hills Old Hire Plan. The plans are part
of an agent multiple-employer Public Employees Retirement System (PERS) administered
by FPPA. When the last participant of the plan passes away, the residual assets will transfer
to the District and can only be used for fire related purposes. The plan is excluded from
being reported as a fiduciary component unit since it is not material to the District.
Net pension liability (asset) is the difference between the total pension liability and the
fiduciary net position as of the measurement date. If the fiduciary net position exceeds the
total pension liability as of the measurement date, there is a net pension asset.
Deferred inflows of resources and deferred outflows of resources are the amounts that are
required to be deferred and recognized in subsequent periods. Deferred outflows of
resources are reported on the statement of net position or balance sheet below assets, while
deferred inflows are reported below liabilities. These amounts refer to items that are not yet
recognized in the net pension liability (asset) or pension expense and include:
51
•
Differences between expected and actual plan experience
•
Changes in actuarial assumptions
•
Differences between projected and actual investment earnings on pension plan
investments
•
Changes in proportion
•
Employer contributions made subsequent to the measurement date through the fiscal
year end
Deferred outflows of resources and deferred inflows of resources will be recognized as
follows:
•
Differences in plan experience, changes in assumptions, and changes in proportion
will be amortized over the remaining service lives of current and former employees,
and retirees.
•
The differences between expected and actual investment earnings will be amortized
over a five-year period.
•
Contributions made subsequent to the measurement date will be recognized as a
reduction (increase) of the net pension liability (asset) in the subsequent year.
FPPA issues a publicly available annual financial report that includes the assets of these
plans. That report may be obtained by calling FPPA at 303-770-3772 in the Denver Metro
area, or 1-800-332-3772 from outside the metro area or on the FPPA website at
http://www.fppaco.org.
The following table summarizes each of the District’s FPPA plans and the respective
pension activity recorded in the financials:
2)
Parker Fire Protection District Volunteer Pension Plan
The Pension Fund’s Board of Trustees is comprised of the five Directors of the South Metro
Fire Rescue Fire Protection District plus two retired volunteer members of the plan. At
December 31, 2021, there are 20 retired volunteers and/or beneficiaries receiving benefits.
The volunteer plan is a closed plan and there are no active members. There are no inactive
members not yet receiving benefits. The benefit amount is $800 per month after reaching 50
years of age and 20 years of service. Any member having a minimum of 10 years of service
and reaching 50 years of age may receive a benefit of $40 per month for each year of service
for a minimum of $400. There is no COLA attached to this plan. In addition, the plan
provides death and disability benefits. The plan is funded based on the bi-annual actuarial
study. The contribution made by the District is the full amount of the required contribution.
Net Pension
Liability
Net Pension
(Asset)
Pension
Expense
(Income)
Deferred
Inflows
Deferred
Outflows
Parker Fire Protection District Volunteer Plan
277,010
$
—
$
19,115
$
22,009
$
94,767
$
South Metro Fire Rescue Volunteer Plan
49,024
—
2
27,269
48,233
Cherry Hills Old Hire Plan
1,339,385
—
(79,101)
136,761
216,735
South Metro FPPA Plan - SWDB
—
(13,079,974)
(1,225,953)
9,058,918
8,905,056
South Metro FPPA Plan - SWH
—
(1,837,850)
62,608
520,640
908,819
Totals
1,665,419
$
(14,917,824)
$
(1,223,329)
$
9,765,597
$
10,173,610
$
52
Plan members do not make contributions. The latest actuarial study was performed as of
January 1, 2021. The next study will be performed January 1, 2023. The actuarial study as of
January 2021 determines the contributions for 2022 and 2023 which is $94,767.
The changes in the net pension liability for the measurement period at December 31, 2021
are calculated as follows:
For the year ended December 31, 2022, the District recognized pension expense of $19,115.
At December 31, 2022, the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Contributions subsequent to the measurement date of December 31, 2021, which are reported
as deferred outflows of resources related to pensions, will be recognized as a reduction in the
net pension liability in the year ended December 31, 2023. Other amounts reported as
A. Total Pension Liability
Interest on the Total Pension Liability
37,551
$
Difference between expected and actual experience
of the Total Pension Liability
-
Changes of assumptions
-
Benefit payments
(64,932)
Net change in total pension liability
(27,381)
$
Total pension liability - beginning
568,361
Total pension liability - ending
540,980
$
B. Plan fiduciary net position
Contributions - employer
45,550
$
Net investment income
33,793
Benefit payments
(64,932)
Pension plan administrative expense
(7,271)
Net change in plan fiduciary net positon
7,140
$
Plan fiduciary net position - beginning
(Market value of assets at beginning of year)
256,830
Plan fiduciary net position - ending
(Market value of assets at end of year)
263,970
$
C. Net pension liability
277,010
$
D. Plan fiduciary net position as a percentage of the
total pension liability
48.79 %
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Net difference between projected and actual earnings on
pension plan investments
—
$
22,009
$
Contributions subsequent to the measurement date
94,767
—
Total
94,767
$
22,009
$
53
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Actuarial Assumptions
The total pension liability in the January 1, 2021 actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method
Entry Age Normal
Withdrawal Rate
20% of members age 50 and eligible for a terminated
vested benefit which would commence immediately
are assumed to withdraw each year
Asset Valuation Method
5-Year Smoothed Fair Value
Inflation
2.50%
Salary Increases
N/A
Investment Rate of Return
7.00%
Retirement Age
50% per year of eligibility until 100% at age 65.
Mortality Tables
Pre-Retirement:
2006 central rates from the RP-
2014 Employee Mortality Tables for males and
females projected to 2018 using the MP-2017
projection scales, and then projected prospectively
using the ultimate rates of the scale for all years, 50%
multiplier for off-duty mortality.
Post-Retirement:
2006 central rates from the RP-
2014 Annuitant Mortality Tables for males and
females projected to 2018 using the MP-2017
projection scales, and then projected prospectively
using the ultimate rates of the scale for all years.
Disabled:
2006 central rates from the RP-2014
Disabled Mortality Tables for males and females
projected to 2018 using the MP-2017 projection
scales, and then projected prospectively using the
ultimate rates of the scale for all years.
There were no changes in assumptions from the prior valuation. The actuarial
assumptions were set by the FPPA Board based on a regularly scheduled experience study
in 2019.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best-estimate ranges of expected future real rates of
Year Ending
December 31
2023
(4,830)
$
2024
(8,696)
2025
(5,135)
2026
(3,348)
Total
(22,009)
$
Net Deferred Outflows/
(Inflows) of Resources
54
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighing the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic nominal rates of return for each major asset class included in the Fund’s target
asset allocation as of December 31, 2021 are summarized in the following table:
Single Discount Rate Sensitivity.
Regarding the sensitivity of the net pension liability to
changes in the Single Discount Rate, the following presents the plans’ net pension
liability, calculated using a Single Discount Rate of 7.00%, as well as what the plans’ net
pension liability would be if it were calculated using a Single Discount Rate that is one
percent lower or one percent higher.
Pension Plan Fiduciary Net Position.
Detailed information about the pension plan’s
fiduciary net position is available in FPPA’s annual comprehensive financial report, which
can be obtained at
http://www.fppaco.org
.
3)
South Metro Fire Rescue Volunteer Pension Plan
Retirement, disability and death benefits are paid in accordance with the plan provisions
established by the Board of Trustees. Full retirement benefit of $800 per month may
commence when the retiree has twenty years of qualified service and is at least 50 years of
age. Reduced benefits of $40 per month may be earned after ten years of qualified service at
age 50 up to a maximum of $400. Spouses of deceased firefighters may receive 50% of the
current pension benefits. There is a $500 funeral benefit.
At December 31, 2021 there are 13 retirees and/or beneficiaries receiving benefits.
The plan
is funded based on the bi-annual actuarial study. The contribution made by the District is the
Asset Class
Target Allocation
Long-term
Expected Real
Rate of Return
Cash
2.00 %
2.32 %
Fixed income - Rates
10.00 %
4.00 %
Fixed income - Credit
5.00 %
5.25 %
Absolute return
10.00 %
5.60 %
Equity long/short
8.00 %
6.87 %
Global public equity
39.00 %
8.23 %
Private markets
26.00 %
10.63 %
Total
100%
1% Decrease
(6.0%)
Current
Discount Rate
(7.0%)
1% Increase
(8.0%)
Proporation share of the
net pension liability
315,175
$
277,010
$
243,375
$
55
full amount of the required contribution. Plan members do not make contributions. The
volunteer plan is a closed plan and there are no active members. There are no inactive
members not yet receiving benefits. The latest actuarial study was performed as of January 1,
2021. The next study will be performed January 1, 2023. The actuarial study as of January
2021 determines that $48,233 of contributions are needed for the 2022 and 2023 years.
The changes in the net pension liability for the measurement period at December 31, 2021 is
calculated as follows:
For the year ended December 31, 2022, the District recognized pension expense of $2. At
December 31, 2022, the District reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
A. Total Pension Liability
Interest on the Total Pension Liability
22,995
$
Difference between expected and actual
experience of the Total Pension Liability
-
Changes of assumption
-
Benefit payments
(35,400)
Net change in total pension liability
(12,405)
$
Total pension liability - beginning
345,899
Total pension liability - ending
333,494
$
B. Plan fiduciary net position
Contributions - employer
11,311
$
Net investment income
38,253
Benefit payments
(35,400)
Pension plan administrative expense
(5,627)
Net change in plan fiduciary net positon
8,537
$
Plan fiduciary net position - beginning
(Market value of assets at beginning of year)
275,933
Plan fiduciary net position - ending
(Market value of assets at end of year)
284,470
$
C. Net pension liability
49,024
$
D. Plan fiduciary net position as a percentage of
the total pension liability
85.30 %
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Net difference between projected and actual earnings on
pension plan investments
—
$
27,269
$
Contributions subsequent to the measurement date
48,233
—
Total
48,233
$
27,269
$
56
Contributions subsequent to the measurement date of December 31, 2021, which are reported
as deferred outflows of resources related to pensions, will be recognized as a reduction in the
net pension liability in the year ended December 31, 2023. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Actuarial Assumptions
The total pension liability in the January 1, 2021 actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method
Entry Age Normal
Withdrawal Rate
20% of members age 50 and eligible for a terminated
vested benefit which would commence immediately
are assumed to withdraw each year
Asset Valuation Method
5-Year Smoothed Fair Value
Inflation
2.50%
Salary Increases
N/A
Investment Rate of Return
7.00%
Retirement Age
50% per year of eligibility until 100% at age 65.
Mortality Tables
Pre-Retirement:
2006 central rates from the RP-
2014 Employee Mortality Tables for males and
females projected to 2018 using the MP-2017
projection scales, and then projected prospectively
using the ultimate rates of the scale for all years, 50%
multiplier for off-duty mortality.
Post-Retirement:
2006 central rates from the RP-
2014 Annuitant Mortality Tables for males and
females projected to 2018 using the MP-2017
projection scales, and then projected prospectively
using the ultimate rates of the scale for all years.
Disabled:
2006 central rates from the RP-2014
Disabled Mortality Tables for males and females
projected to 2018 using the MP-2017 projection
scales, and then projected prospectively using the
ultimate rates of the scale for all years.
There were no changes in assumptions from the prior valuation. The actuarial
assumptions were set by the FPPA Board based on a regularly scheduled experience study
in 2019.
Year Ending
December 31
2023
(6,189)
$
2024
(10,448)
2025
(6,640)
2026
(3,992)
Total
(27,269)
$
Net Deferred Outflows/
(Inflows) of Resources
57
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighing the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic nominal rates of return for each major asset class included in the Fund’s target
asset allocation as of December 31, 2021 are summarized in the following table:
Single Discount Rate Sensitivity
Regarding the sensitivity of the net pension liability to changes in the Single Discount
Rate, the following presents the plans’ net pension liability, calculated using a Single
Discount Rate of 7.00%, as well as what the plans’ net pension liability would be if it were
calculated using a Single Discount Rate that is one percent lower or one percent higher.
Pension Plan Fiduciary Net Position.
Detailed information about the pension plan’s
fiduciary net position is available in FPPA’s annual comprehensive financial report, which
can be obtained at
http://www.fppaco.org
.
4)
Cherry Hills Old Hire Firefighter Plan
The Plan is a defined benefit pension plan covering substantially all full-time employees of a
police or fire department in Colorado hired on or after April 8, 1978 (New Hires) provided
that they are not already covered by a statutory exempt plan. The Plan became effective on
January 1, 1980.
Asset Class
Target Allocation
Long-term
Expected Real
Rate of Return
Cash
2.00 %
2.32 %
Fixed income - Rates
10.00 %
4.00 %
Fixed income - Credit
5.00 %
5.25 %
Absolute return
10.00 %
5.60 %
Equity long/short
8.00 %
6.87 %
Global public equity
39.00 %
8.23 %
Private markets
26.00 %
10.63 %
Total
100%
1% Decrease
(6.0%)
Current
Discount Rate
(7.0%)
1% Increase
(8.0%)
Proporation share of the net
pension liability
75,319
$
49,024
$
26,166
$
58
A firefighter’s normal retirement is after reaching 50 years of age and 20 years of service.
Any member having a minimum of 10 years of credited service is eligible for a deferred
retirement at reaching 50 years of age. The monthly deferred retirement is equal to 2.5% of
their monthly salary at the date of termination multiplied by their number of years of credited
service not to exceed 70% of their salary.
If a retired firefighter dies, the surviving spouse shall receive, until death or remarriage, a
monthly pension equal to one third of the monthly salary of a first-grade firefighter at time of
death.
If a terminated firefighter who is eligible to receive or is receiving a vested benefit dies, the
surviving spouse shall receive until death or remarriage, a monthly pension equal to one third
of the monthly salary of a first-grade firefighter at the time of termination, payable on the
date the firefighter would have reached age 50.
Effective January 1, 1993, the District Board adopted a partial rank escalation clause for this
plan for all current and past participants. This provision applies only to rank increases
subsequent to January 1, 1993.
On May 23, 1983, the Colorado Revised Statutes were amended to allow the Trustees of the
Plan to change the retirement age on an annual basis, depending upon the results of the
actuarial valuation and other circumstances.
At December 31, 2021, there are 10 retirees and/or beneficiaries receiving benefits from this
plan. This plan was closed upon the merger of Cherry Hills Fire Protection District and South
Metro Fire Rescue. This is a closed plan and there are no active members. There are no
inactive members not yet receiving benefits.
Contributions are dependent on the biannual actuarial studies done by FPPA, which at
January 1, 2020 determined a $216,735 contribution be made in 2021 and 2022. The next
actuarial study was done as of January 1, 2022. The contribution was recorded from the
Cherry Hills Property Tax Special Revenue Fund, which collects the property tax receipts
from the properties in the old Cherry Hills Fire Protection District which are used to fund the
Old Hire Pension Trust Fund.
The changes in the net pension liability for the measurement period at December 31,
2021 is calculated as follows:
59
For the year ended December 31, 2022, the District recognized a reduction of pension
expense of $79,101. At December 31, 2022, the District reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Contributions subsequent to the measurement date of December 31, 2021, which are reported
as deferred outflows of resources related to pensions, will be recognized as a reduction in the
net pension liability in the year ended December 31, 2023. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
A. Total pension liability
Interest on the Total Pension Liability
247,687
$
Difference between expected and actual experience
of the Total Pension Liability
(132,085)
Changes of assumptions
—
Benefit Payments
(356,974)
Net change in pension liability
(241,372)
$
Total pension liability - beginning
3,986,249
Total pension liability - ending
3,744,877
$
B. Plan fiduciary net position
Contributions - employer
216,735
$
Net investment income
249,749
Benefit payments
(356,973)
Pension Plan Administrative Expense
(3,089)
Net change in plan fiduciary net position
106,422
$
Plan fiduciary net positon - beginning
(Market value of assets at beginning of year)
2,299,070
Plan fiduciary net position - ending
(Market value of assets at end of year)
2,405,492
$
C. Net pension liability
1,339,385
$
D. Plan fiduciary net position as a percentage of
the total pension liability
64.23 %
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Net difference between projected and actual earnings on
pension plan investments
—
$
136,761
$
Contributions subsequent to the measurement date
216,735
—
Total
216,735
$
136,761
$
60
Actuarial Assumptions
The total pension liability in the January 1, 2021 actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method
Entry Age Normal
Withdrawal Rate
20% of members age 50 and eligible for a terminated
vested benefit which would commence immediately
are assumed to withdraw each year
Asset Valuation Method
5-Year Smoothed Fair Value
Inflation
2.50%
Salary Increases
N/A
Investment Rate of Return
6.50%
Retirement Age
Any remaining actives are assumed to retire
immediately.
Mortality Tables
Post-Retirement:
2006 central rates from the RP-
2014 Annuitant Mortality Tables for males and
females projected to 2018 using the MP-2017
projection scales, and then projected prospectively
using the ultimate rates of the scale for all years.
Disabled (pre-1980):
Post-retirement rates set
forward three years.
There were no changes in assumptions from the prior valuation. The actuarial
assumptions were set by the FPPA Board based on a regularly scheduled experience study
in 2020.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighing the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic nominal rates of return for each major asset class included in the Fund’s target
asset allocation as of December 31, 2021 are summarized in the following table:
Year Ending
December 31
2023
(25,185)
$
2024
(56,105)
2025
(34,493)
2026
(20,978)
Total
(136,761)
$
Net Deferred Outflows/
(Inflows) of Resources
61
Single Discount Rate Sensitivity
Regarding the sensitivity of the net pension liability to changes in the Single Discount
Rate, the following presents the plans’ net pension liability, calculated using a Single
Discount Rate of 7.00%, as well as what the plans’ net pension liability would be if it were
calculated using a Single Discount Rate that is one percent lower or one percent higher.
Pension Plan Fiduciary Net Position.
Detailed information about the pension plan’s
fiduciary net position is available in FPPA’s annual comprehensive financial report, which
can be obtained at
http://www.fppaco.org
.
The Pension Plan is funded entirely by a mill levy assessed on the former Cherry Hills Fire
Protection District. For 2022 the mill levy was 0.500 mills.
5)
Fire and Police Pension Plan (FPPA) – Statewide Defined Benefit Plan
Plan description.
The Statewide Defined Benefit Plan (SWDB) is a cost-sharing multiple –
employer defined benefit pension plan. The SWDB plan became effective January 1, 1980
and is administered by FPPA.
Employers once had the option to elect to withdraw from the SWDB plan, but a change in
state statutes permitted no further withdrawals after January 1, 1988.
Colorado Revised Statutes, Title 31, Article 31 grants the District to establish and amend the
benefit terms to the Fire & Police Pension Association of Colorado Board of Directors. FPPA
issues a publicly available financial report that can be obtained at www.fppaco.org.
Asset Class
Target
Allocation
Long-term
Expected Real
Rate of Return
Cash
5%
0.10%
Fixed income - Rates
32%
2.30%
Fixed income - Credit
6%
3.50%
Absolute return
6%
5.60%
Equity long/short
6%
6.90%
Global public equity
17%
7.80%
Private markets
28%
10.50%
Total
100%
1% Decrease
(6.0%)
Current
Discount Rate
(7.0%)
1% Increase
(8.0%)
Proporation share of the net
pension liability
1,636,958
$
1,339,385
$
1,078,446
$
62
Benefits provided.
A member is eligible for a normal retirement pension once the member
has completed 25 years of credited service and has attained the age of 55. Effective January
1, 2021, a member may also qualify for a normal retirement pension if the member's
combined years of service and age equals at least 80, with a minimum age of 50 (Rule of 80).
The annual normal retirement benefit is 2 percent of the average of the member’s highest
three years’ pensionable earnings for each year of credited service up to ten years, plus 2.5
percent for each year of service thereafter. Benefit adjustments paid to retired members are
evaluated annually and may be re-determined every October 1. The amount of any increase
is based on the Board’s discretion and can range from 0 to the higher of 3 percent or the
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
A member is eligible for an early retirement after completion of 30 years of service or
attainment of age 50 with at least five years of credited service. The early retirement benefit
equals the normal retirement benefit reduced on an actuarially equivalent basis. Upon
termination, an employee may elect to have member contributions, along with 5 percent as
interest, returned as a lump sum distribution. Alternatively, a member with at least five years
of accredited service may leave contributions with the Plan and remain eligible for a
retirement pension at age 55 equal to 2 percent of the member’s average highest three years’
pensionable earnings for each year of credited service up to ten years, plus 2.5 percent for
each year of service thereafter.
A member may elect to participate in the deferred retirement option plan (DROP) after
reaching eligibility for normal retirement, early retirement, or vested retirement at age 55. A
member can continue to work while participating in the DROP, but must terminate
employment within 5 years of entry into DROP. The member’s participating percentage of
retirement benefit is determined at the time of entry into the DROP. The monthly payments
that begin at the entry into the DROP are accumulated in a DROP account until the member
terminates service, at which time the DROP accumulated benefits can be paid as periodic
installments, a lump sum, or if desired, a member may elect to convert the DROP to a
lifetime monthly benefit with survivor benefits. While participating in the DROP, the
member continues to make pension contributions that are credited to the DROP. Effective
January 1, 2003, the member shall self-direct investments of their DROP funds.
Contributions.
Through December 31, 2021, contribution rates for the SWDB plan are set
by state statute. Employer contribution rates can only be amended by state statute. Member
contribution rates can be amended by state statute or election of the membership. Effective
January 1, 2021, contribution rates for employers and members may be increased equally by
the FPPA Board of Directors upon approval through an election by both the employers and
members.
In 2014, the members elected to increase the member contribution rate to the SWDB plan
beginning in 2015. Member contribution rates will increase 0.5 percent annually through
2022 to a total of 12 percent of pensionable earnings. Employer contributions increase 0.5
63
percent annually beginning in 2021 through 2030 to a total of 13.0 percent of pensionable
earnings. In 2021, members of the SWDB plan and their employers are contributing at the
rate of 11.5 percent and 8.5 percent, respectively, of pensionable earnings for a total
contribution rate of 20.0 percent.
The contribution rate for members and employers of affiliated social security employers is
5.75 percent and 4.25 percent, respectively, of pensionable earnings for a total contribution
rate of 10.0 percent in 2021. Per the 2014 member election, members of the affiliate social
security group had their required contribution rate increase 0.25 percent annually beginning
in 2015 through 2022 to a total of 6 percent of pensionable earnings. Employer contributions
will increase 0.25 percent annually beginning in 2021 through 2030 to a total of 6.5 percent
of pensionable earnings.
The member contribution rate as of December 31, 2022 was 12% and the District’s
contribution rate was 9.0%. Contributions to the SWDB plan from the District were
$1,666,658 for the year ended December 31, 2022.
Pension Assets, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At December 31, 2022, the District reported an asset of $13,079,974 for its proportionate
share of the SWDB net pension asset. The net pension asset was measured as of December
31, 2021, and the total pension asset used to calculate the net pension asset was determined
by an actuarial valuation as of January 1, 2022, which was unchanged from December 31,
2021. The District’s proportion of the net pension asset was based on the District’s share of
contributions to the pension plan relative to the contributions of all participating entities. At
December 31, 2021, the District’s proportion was 2.414 percent, which was a decrease of
0.199 percent from its proportion measured as of December 31, 2020
.
For the year ended December 31, 2022, the District recognized pension income of
$1,225,953. At December 31, 2022, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience
3,745,487
$
305,062
$
Changes of assumptions or other inputs
1,865,298
—
Net difference between projected and actual earnings on pension
plan investments
—
8,753,856
Changes in proportion and differences between contributions
recognized and proportionate share of contributions
1,627,613
—
Contributions subsequent to the measurement date
1,666,658
—
Total
8,905,056
$
9,058,918
$
64
Total reported deferred outflows of resources related to pension were $1,666,658 resulting
from District contributions subsequent to measurement date will be recognized as an increase
of the net pension asset in the year ended December 31, 2023. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Actuarial Assumptions.
The January 1, 2022 actuarial valuation used the following
actuarial assumptions and other inputs:
For determining the total pension liability post-retirement mortality tables for non-disabled
retirees uses the 2006 central rates from the RP-2014 Annuitant Mortality Tables projected to
2018 using the MP-2017 projection scales, and the projected prospectively using the ultimate
rates of the scale for all years. The preretirement off-duty mortality tables are adjusted to
50% of the RP-2014 mortality tables for active employees. The on-duty mortality rate is
0.00015.
At least every five years the FPPA’s Board of Directors, in accordance with best practices,
reviews its economic and demographic actuarial assumptions. At its July 2018 meeting, the
Board of Directors reviewed and approved recommended changes to the actuarial
assumptions. The recommendations were made by the FPPA’s actuaries, Gabriel, Roeder,
Smith & Co., based upon their analysis of past experience and expectations of the future. The
assumption changes were effective for actuarial valuations beginning January 1, 2019. The
actuarial assumptions impact actuarial factors for benefit purposes such as purchases of
service credit and other benefits where actuarial factors are used.
Year Ending
December 31
2023
(933,120)
$
2024
(1,838,598)
2025
(924,260)
2026
(90,774)
2027
1,016,906
Thereafter
949,326
Total
(1,820,520)
$
Net Deferred Outflows/
(Inflows) of Resources
Total Pension Liability
Actuarial valuation date
January 1, 2022
Actuarial method
Entry Age Normal
Amortization method
N/A
Amortization period
N/A
Long-term investment rate of return*
7.00%
Projected salary increases*
4.25% - 11.25%
Cost of living adjustments (COLA)
0.00%
*Includes inflation at
2.50%
65
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighing the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation (assumed at 2.5 percent). Best estimates of
arithmetic real rates of return for each major asset class included in the Fund’s target asset
allocation as of December 31, 2021 are summarized in the following table:
Discount Rate.
The discount rate used to measure the total pension liability was 7.00
percent. The projection of cash flows used to determine the discount rate assumed that
contributions from participating employers will be made based on the actuarially determined
rates based on the Board’s funding policy, which establishes the contractually required rates
under Colorado statutes. Based on those assumptions, the SWDB plan fiduciary net position
was projected to be available to make all the projected future benefit payments of current
plan members. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension
liability.
Sensitivity of the District’s Proportionate Share of the Net Pension Asset to Changes in
the Discount Rate.
The following presents the District’s proportionate share of the net
pension liability (asset) calculated using the discount rate of 7.0 percent, as well as what the
District’s proportionate share of the net pension liability (asset) would be if it were calculated
using a discount rate that is 1-percentage-point lower (6.0 percent) or 1-percentage-point
higher (8.0 percent) than the current rate:
Changes Between the Measurement Date of the Net Pension Asset and December 31,
2022.
Statewide Retirement Plan:
During 2022, House Bill 22-1034 was signed into law.
This legislation combines the assets and liabilities of the Statewide Defined Benefit Plan and
Asset Class
Target Allocation
Long-term Expected Real
Rate of Return
Global equity
39%
8.23%
Equity long/short
8%
6.87%
Private markets
26%
10.63%
Fixed income - Rates
10%
4.01%
Fixed income - Credit
5%
5.25%
Absolute return
10%
5.60%
Cash
2%
2.32%
Total
100%
1% Decrease
(6.0%)
Current Discount
Rate (7.0%)
1% Increase
(8.0%)
Proporation share of the net pension
liability (asset)
$
(1,803,810)
$
(13,079,974)
$
(22,421,648)
66
Statewide Hybrid Plan to form the Statewide Retirement Plan effective January 1, 2023. The
merger will result in increased longer-term stability for both plans in addition to
simplification of administration, operation and communication of benefits. The financial
impact of the merger of plans is being determined.
Actuarial Experience Study:
During 2022,
FPPA engaged Gabriel, Roeder Smith & Co. to complete an actuarial experience study. The
FPPA Board of Directors accepted the findings of the study at its July 28, 2022 meeting.
These assumptions will be included in the Statewide Retirement Plan valuation as of January
1, 2023.
Pension Plan Fiduciary Net Position.
Detailed information about the SWDB’s fiduciary
net position is available in FPPA’s annual comprehensive financial report, which can be
obtained at
http://www.fppaco.org
.
6)
State Fire and Police Pension Plan (FPPA) – Statewide Hybrid Plan
Plan description.
The Statewide Hybrid Plan (SWH) is a cost-sharing multiple employer
defined benefit pension plan covering full-time firefighters and police officers from
departments that elect coverage. The SWH plan may also cover clerical staff or other fire
district personnel whose services are auxiliary to fire protection. The SWH plan is comprised
of two components: Defined Benefit and Money Purchase. With the latter component,
employees have the option of choosing among various mutual funds offered by an outside
investment manager. Employers may not withdraw from the SWH plan once affiliated.
The SWH is comprised of two components: Defined Benefit and Money Purchase. The Plan
assets associated with the Defined Benefit Component are included in the Fire & Police
Members’ Benefit Investment Fund and the Plan assets associated with the Money Purchase
Component and Deferred Retirement Option Plan (DROP) assets are included in the Fire &
Police Members’ Self-Directed Investment Fund.
Colorado Revised Statutes, Title 31, Article 31 grants the authority to establish and amend
the benefit terms to the Fire & Police Pension Association of Colorado Board of Directors.
FPPA issues a publicly available financial report that can be obtained at www.fppaco.org.
Benefits provided
. The SWH plan document states that any member may retire from further
service and become eligible for a normal retirement pension at any time after age 55 if the
member has at least 25 years of service.
The annual normal pension of the Defined Benefit Component is 1.5 percent of the average
of the member’s highest three years’ base salary for each year of credited service. Benefits
paid to retired members of the Defined Benefit Component are evaluated and may be re-
determined annually on October 1. The amount of any increase is based on the Board’s
discretion and can range from 0 to 3 percent.
A member is eligible for an early retirement at age 50 or after 30 years of service. The early
retirement benefit equals the normal retirement benefit reduced on an actuarially equivalent
67
basis. Upon termination, an employee may elect to have member contributions, along with 5
percent as interest, returned as a lump sum distribution. Alternatively, a member with at least
five years of accredited service may leave contributions with the Defined Benefit Component
of the SWH plan and remain eligible for a retirement pension at age 55 equal to 1.5 percent
of the average of the member’s highest three years' base salary for each year of credited
service. In addition, upon termination, the vested account balance within the Money
Purchase Component becomes available to the member.
A member may elect to participate in the DROP after reaching eligibility for normal
retirement, early retirement or vested retirement and age 55. A member continues to work
while participating in the DROP, but must terminate employment within five years of entry
into the DROP. The member’s percentage of retirement benefit is frozen at the time of entry
into the DROP. The monthly payments that begin at entry into the DROP are accumulated
until the member terminates service, at which time the DROP accumulated benefits can be
paid as periodic installments, a lump sum, or if desired a
member may elect to convert the
DROP to a lifetime monthly benefit with survivor benefits. The member continues to make
contributions, which are credited to the DROP. The member shall self-direct the investments
of their DROP funds.
Contributions.
The Plan sets contribution rates at a level that enables all benefits to be fully
funded at the retirement date of all members. The members of the SWH plan and their
employers are currently each contributing at the rate determined by the individual employer,
however, the rate for both employer and members must be at least 8 percent of the member’s
pensionable earnings. The amount allocated to the Defined Benefit Component is set
annually by the FPPA Board of Directors. Excess contributions fund the Money Purchase
Component of the Plan. The Defined Benefit Component contribution rate from July 1, 2020
through June 30, 2021 was 13.80 percent. The Defined Benefit Component contribution rate
from July 1, 2019 through June 30, 2020 was 13.80 percent. Effective July 1, 2021 the
Defined Benefit Component contribution rate is set at 14.10 percent.
Within the Money Purchase Component, members are always fully vested in their own
contributions, as well as the earnings on those contributions. Vesting in the employer’s
contributions within the Money Purchase Component, and earnings on those contributions
occurs according to the vesting schedule set by the SWH plan document at 20 percent per
year after the first year of service to be 100 percent vested after 5 years of service. Employer
and member contributions are invested in funds at the discretion of members.
Contributions to the SWH plan from the District were $59,850 for the year ended December
31, 2022.
Pension Asset, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At December 31, 2022, the District reported an asset of $1,837,850 for its proportionate
share of the net pension asset. The net pension asset was measured as of December 31, 2021,
68
and the total pension liability used to calculate the net pension asset was based upon the
January 1, 2022 actuarial valuation, which was unchanged from December 31, 2021. The
District’s proportion of the net pension asset was based on the District’s share of
contributions to the pension plan relative to the contributions of all participating members. At
December 31, 2021, the District’s proportion was 4.847%, which was an increase of 0.193%
from its proportion measured as of December 31, 2020.
For the year ended December 31, 2022, the District recognized a pension expense of
$62,608. At December 31, 2022, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
The $59,850 reported as deferred outflows of resources related to pensions resulting from the
District contributions subsequent to the measurement date will be recognized as an increase
of the net pension asset in the year ended December 31, 2023. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Actuarial assumptions.
The January 1, 2022 actuarial valuation used the following actuarial
assumptions and other inputs:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Difference between actual and expected experience
367,050
$
—
$
Changes of assumptions or other inputs
45,214
—
Net difference between projected and actual earnings on pension
plan investments
—
520,640
Changes in proportion and differences between contributions
recognized and proportionate share of contributions
436,705
—
Contributions subsequent to the measurement date
59,850
—
Total
908,819
$
520,640
$
Year Ending
December 31
2023
151,475
$
2024
104,334
2025
57,693
2026
10,934
2027
6,534
Thereafter
(2,641)
Total
328,329
$
Net Deferred Outflows/
(Inflows) of Resources
69
For determining the total pension liability post-retirement mortality tables for non-disabled
retirees uses the 2006 central rates from the RP-2014 Annuitant Mortality Tables projected to
2018 using the MP-2017 projection scales, and the projected prospectively using the ultimate
rates of the scale for all years. The preretirement off-duty mortality tables are adjusted to
50% of the RP-2014 mortality tables for active employees. The on-duty mortality rate is
0.00015.
At least every five years the FPPA’s Board of Directors, in accordance with best practices,
reviews its economic and demographic actuarial assumptions. At its July 2018 meeting, the
Board of Directors reviewed and approved recommended changes to the actuarial
assumptions. The recommendations were made by the FPPA’s actuaries, Gabriel, Roeder,
Smith & Co., based upon their analysis of past experience and expectations of the future. The
assumption changes were effective for actuarial valuations beginning January 1, 2019. The
actuarial assumptions impact actuarial factors for benefit purposes such as purchases of
service credit and other benefits where actuarial factors are used.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighing the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation (assumed at 2.5 percent). Best estimates of
arithmetic real rates of return for each major asset class included in the Fund’s target asset
allocation as of December 31, 2021 are summarized in the following table:
Total Pension Liability
Actuarial valuation date
January 1, 2022
Actuarial method
Entry Age Normal
Amortization method
N/A
Amortization period
N/A
Long-term investment rate of return, net*
7.00%
Projected salary increases*
4.25% - 11.25%
Cost of living adjustments (COLA)
0.00%
*Includes inflation at
2.50%
Asset Class
Target Allocation
Long-term Expected
Real Rate of Return
Global equity
39%
8.23%
Equity long/short
8%
6.87%
Private markets
26%
10.63%
Fixed income - Rates
10%
4.01%
Fixed income - Credit
5%
5.25%
Absolute return
10%
5.60%
Cash
2%
2.32%
Total
100%
70
Discount rate.
The discount rate used to measure the total pension liability was 7.00 percent.
The projection of cash flows used to determine the discount rate assumed that contributions
from participating employers will be made based on the actuarially determined rates based
on the Board’s funding policy, which establishes the contractually required rates under
Colorado statutes. Based on those assumptions, the SWH - Defined Benefit Component plan
fiduciary net position was projected to be available to make all the projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity of the District’s proportionate share of the net pension liability (asset) to
changes in the discount rate.
The following presents the District’s proportionate share of
the net pension liability (asset), calculated using the discount rate of 7.0%, as well as what
the District’s proportionate share of the net pension liability (asset) would be if it were
calculated using a discount rate that is one percent lower or one percent higher:
Changes Between the Measurement Date of the Net Pension Asset and December 31,
2022.
Statewide Retirement Plan:
During 2022, House Bill 22-1034 was signed into law.
This legislation combines the assets and liabilities of the Statewide Defined Benefit Plan and
Statewide Hybrid Plan to form the Statewide Retirement Plan effective January 1, 2023. The
Statewide Hybrid Plan will become the Hybrid Defined Benefit Component of the Statewide
Retirement Plan. The merger will result in increased longer-term stability for both plans in
addition to simplification of administration, operation and communication of benefits. The
financial impact of the merger of plans is being determined and will be reported in the
December 31, 2022 GASB 68 report.
To complete the merger of the plans equitably, the funded status of the Statewide Hybrid
Plan will be reduced to match the Statewide Defined Benefit Plan. To complete this action, a
one-time benefit adjustment on all service accrued prior to the merger date of January 1,
2023 for current retirees, deferred vested, and active members will be applied. Member that
have not started to receive a retirement benefit payment will receive a 1.9% benefit factor for
service earned prior to January 1, 2023. Service earned after the merger date will continue to
earn 1.5% benefit factor. Retired members receiving benefit payments as of the merger date
will received a one-time benefit increase of 26.66% to implement in the benefit factor.
As part of this legislation, effective January 1, 2023, a member may also qualify for a normal
retirement pension if the member’s combined years of service and age equals at least 80,
with a minimum age of 50 (Rule of 80).
1% Decrease
(6.0%)
Current Discount
Rate (7.0%)
1% Increase
(8.0%)
Proporation share of the net
pension liability (asset)
(1,402,359)
(1,837,850)
(2,201,464)
71
Additionally, the required minimum contributions to the Hybrid Defined Benefit Component
will increase to 9% for members and 9% for employers. The increase will take effect January
1, 2023 at a rate of 0.125% per year through 2030. Employer departments with contribution
rates that meet or are in excess of this amount will not be impacted by this change.
Actuarial Experience Study:
During 2022, FPPA engaged Gabriel, Roeder Smith & Co. to
complete an actuarial experience study. The FPPA Board of Directors accepted the findings
of the study at its July 28, 2022 meeting. These assumptions will be included in the
Statewide Retirement Plan valuation as of January 1, 2023.
Pension plan fiduciary net position.
Detailed information about the pension plan's fiduciary
net position is available in FPPA’s annual comprehensive financial report, which can be
obtained at
http://www.fppaco.org
.
8)
Other Postemployment Benefit Plan
Retiree Health Savings Plan
The District has a single-employer defined benefit other postemployment benefit (OPEB)
plan, Retiree Health Savings Plan (RHS). For purposes of measuring the total OPEB
liability, deferred outflows of resources and deferred inflows of resources related to
OPEB, and OPEB expense have been determined on the same basis as they are reported
by the OPEB. For this purpose, benefit payments are recognized when due and payable in
accordance with the benefit terms.
Investments are reported at fair value.
Plan Description
The District contributes to the Retiree Health Savings Plan (RHS), a single-employer
defined benefit other postemployment benefit (OPEB) plan covering substantially all
employees. This RHS plan has investment management services performed by Voya
Financial and it is administrated by Total Administrative Services Corporation (TASC).
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB
Statement No. 75 and the plan is funded on a “pay-as-you-go” basis. Benefit provisions
are contained in Districts working agreement and were established and can be amended
by action of the District’s governing body.
Benefits Provided
The RHS benefit is provided by the District to assist employees in building a fund for
retirement health care expenses. Individuals are eligible to access these funds at the time
of separation from service. Employees are automatically enrolled in the plan upon hire.
There are two components to the RHS plan. First, the annually contribution for active
employees where firefighter employees receive a District contribution of $2,411 annually
72
and administrative staff employees receive a District contribution of $1,415 annually.
Second, the District guarantees a minimum RHS balance at separation of employment to
eligible employees. This eligibility is determined using a combination of years of service
and employees’ age upon separation and the minimum guaranteed RHS balance is
reduced based on age.
Actuarial Assumptions
The total OPEB liability in December 31, 2022, actuarial valuations was determined
using the following actuarial assumptions, applied to all periods included in the
measurement:
The actuarial assumptions used in the December 31, 2022, valuations were based on the
results of an actuarial experience study for the period January 1, 2022 through December
31, 2022. At the end December 31, 2022, there were 759 active and eligible employees
covered by the benefit.
The discount rate was based on the 20-year, tax-exempt municipal bond rate. The
discount rate was updated from 2.06% to 3.72% since the beginning of the fiscal year.
Total OPEB Liability
The District’s total OPEB liability of $17,078,780 was measured as of December 31,
2022, and was determined by actuarial valuations as of that date.
Changes in the total OPEB liability are:
Measurement Date
December 31, 2022
Actuarial Cost Method
Entry Age Normal
Discount Rate
3.72% per annum
Benefit Increase Rate
3% per annu
m
Medical Eligibility
All current and future retirees
Mortality
Due to the nature of the benefit design and the current
structure that the employee's RHS fund balance is not lost or
reverted to the employer upon death, mortality assumption is
not reflected as a conservative approach given the employee's
estate can fully utilize the benefit.
73
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The total OPEB liability of the District has been calculated using a discount rate of
3.72%.
The following presents the total OPEB liability using a discount rate 1 percent
higher and 1 percent lower than the current discount rate:
The total OPEB liability of the District has been calculated using health care cost trend
rates of 3 percent.
The following presents the total OPEB liability using health care cost
trend rates 1 percent higher and 1 percent lower than the current health care cost trend
rates.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
For the year ended December 31, 2022, the District recognized OPEB expense of
$1,097,491.
At December 31, 2022, the District reported deferred outflows or resources
and deferred inflows of resources related to OPEB from the following sources:
Other amounts reported as deferred inflows of resources at December 31, 2022, related to
OPEB will be recognized in OPEB expense as follows:
2022
Total OPEB liability, beginning of year
$
17,855,709
Changes for the year:
Service cost
2,262,960
Interest cost
400,035
Changes in assumptions
(2,040,939)
Benefit payment
(1,398,985)
Net changes
(776,929)
Total OPEB liability, end of yea
r
$
17,078,780
1% Decrease
(2.72%)
Current Discount
Rate (3.72%)
1% Increase
(4.72%)
District's total OPEB liability
18,256,000
$
17,079,000
$
15,953,000
$
1% Decrease
Current Health Care
Cost Trend Rates
1% Increase
District's total OPEB liability
15,329,000
$
17,079,000
$
19,068,000
$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of assumptions or other inputs
—
$
(1,874,420)
$
Total
—
$
(1,874,420)
$
74
9)
Other Employee savings plans
Deferred compensation plans
The District has a deferred compensation plan, South Metro Fire 457(B) Plan, created in
accordance with Internal Revenue Code Section 457. The plan is administered by Voya
Financial. The plan allows the employees to defer a portion of their salary until future years.
The deferred compensation is not available to employees until termination, retirement, death
or unforeseen emergencies. Employees are eligible to participate and to receive a match on
the first date of hire.
The District has a matching program up to 4% for the Deferred Compensation Plan. The first
2% is contributed on the date of hire and requires no match. In the 5
th
year of service, an
employee may receive total of 3% but the employee must contribute 1% to the Deferred
Compensation Plan. In the 10
th
year of service, an employee may receive total of 4% but the
employee must contribute 2% to the Deferred Compensation Plan. Employee and employer
contributions are fully vested on the first day of participation in the plan.
For the year ended December 31, 2022, District contributed and recognized as expense
$2,573,896. Employees are 100% vested upon date of hire, therefore, there were no
forfeitures returned to the plan during 2022.
.
NOTE 13 - TAX, SPENDING AND DEBT LIMITATIONS
Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer's Bill
of Rights (TABOR) contains tax, spending, revenue and debt limitations that apply to the
State of Colorado and all local governments.
Enterprises, defined as government-owned businesses authorized to issue revenue bonds and
receiving less than 10% of annual revenue in grants from all state and local governments
combined, are excluded from the provisions of TABOR.
Spending and revenue limits are determined based on the prior year's Fiscal Year Spending
adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending
Year Ending
December 31
2023
(166,519)
$
2024
(166,519)
2025
(166,519)
2026
(166,519)
2027
(166,519)
Thereafter
(1,041,825)
Total
(1,874,420)
$
Net Deferred Outflows/
(Inflows) of Resources
75
is generally defined as expenditures plus reserve increases with certain exceptions. Revenue
in excess of the Fiscal Year Spending limit must be refunded unless the voters approve
retention of such revenue.
TABOR requires local governments to establish Emergency Reserves. These reserves must
be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments
are not allowed to use the emergency reserves to compensate for economic conditions,
revenue shortfalls, or salary or benefit increases.
The District's management believes it is in compliance with the provisions of TABOR.
However, TABOR is complex and subject to interpretation. Many of the provisions,
including the interpretation of how to calculate Fiscal Year Spending limits and
qualifications will require judicial interpretation.
NOTE 14 – CONTINGENCY
Litigation
Based on the nature of operations, the District is often named as a defendant in a variety of
litigation claims. As of the date of this report, management is not aware of any material
asserted claims against the District that are considered probable and would require accrual in
the financial statements. While it is not possible to forecast the outcome of litigation or the
timing of costs, in the opinion of management, it is not probable and is unlikely that
litigation will have a material adverse effect on the financial position of the District.
76
REQUIRED SUPPLEMENTARY INFORMATION
77
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2022
See the independent auditor’s report and notes to the required supplementary information.
Original and Final
Budget
Actual
Variance
Positive
(Negative)
REVENUES
Property taxes
125,723,047
$
124,988,592
$
(734,455)
$
Specific ownership taxes
10,686,459
9,508,226
(1,178,233)
Charges for service - transports
12,371,288
12,769,267
397,979
Charges for service - plan review fees
1,823,500
2,450,898
627,398
Medicaid supplemental fee
6,377,395
6,951,772
574,377
Dispatch fees
121,721
121,721
—
Intergovernmental and other reimbursements
2,110,974
1,989,489
(121,485)
Investment income (loss)
470,000
(222,190)
(692,190)
Lease rental income
190,171
209,514
19,343
Miscellaneous revenue
403,990
312,212
(91,778)
Total revenues
160,278,545
159,079,501
(1,199,044)
EXPENDITURES
Public safety
Operations
104,477,124
103,360,737
1,116,387
Administration
39,461,229
37,018,066
2,443,163
Fire Marshal
5,519,294
5,486,597
32,697
Dispatch
4,318,114
3,930,886
387,228
Debt service lease payments
—
449,044
(449,044)
Debt service interest payments
—
5,291
(5,291)
Capital outlay
—
2,054,133
(2,054,133)
Total expenditures
153,775,761
152,304,754
1,471,007
Excess of revenues over (under) expenditures
6,502,784
6,774,747
271,963
OTHER FINANCING SOURCES (USES)
Transfers to other funds
(15,000,000)
(15,000,000)
—
Lease proceeds
—
194,968
194,968
Sale of capital assets
—
1,695,905
1,695,905
Total other financing sources (uses)
(15,000,000)
(13,109,127)
1,890,873
Net change in fund balances
(8,497,216)
(6,334,380)
2,162,836
Fund balances - beginning of year
49,541,009
48,360,866
(1,180,143)
Fund balances - end of yea
r
41,043,793
$
42,026,486
$
982,693
$
78
Parker Fire Protection District Volunteer Pension Plan
Schedule of Required Supplemental Information
Schedule of Changes in Net Pension Liability/(Asset) and
Related Ratios Multiyear Last Ten Fiscal Years
(to be built prospectively)
See the independent auditor’s report and notes to the required supplementary information.
Measurement period ending December 31,
2014
2015
2016
2017
2018
2019
2020
2021
Total Pension Liability
Service Cost
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
Interest on Total Pension Liability
48,963
48,346
46,295
45,556
43,700
41,885
40,058
37,551
Difference between Expected and
Actual Experience
20,301
—
(14,675)
—
24,121
—
(10,046)
—
Changes of Assumptions
—
—
30,490
—
17,714
—
—
—
Benefit Payments
(77,243)
(77,742)
(73,559)
(70,308)
(70,308)
(69,265)
(66,682)
(64,932)
Net Change in Pension Liability
(7,979)
$
(29,396)
$
(11,449)
$
(24,752)
$
15,227
$
(27,380)
$
(36,670)
$
(27,381)
$
Total Pension Liability - Beginning
690,760
682,781
653,385
641,936
617,184
632,411
605,031
568,361
Total Pension Liability - Ending
682,781
$
653,385
$
641,936
$
617,184
$
632,411
$
605,031
$
568,361
$
540,980
$
Plan Fiduciary Net Position
Employer Contributions
27,895
$
27,596
$
28,670
$
28,670
$
—
$
61,238
$
45,550
$
45,550
$
Pension Plan Net Investment Income
26,156
6,604
17,007
41,017
1,128
33,879
26,007
33,793
Benefit Payments
(77,243)
(77,742)
(73,559)
(70,308)
(70,308)
(69,265)
(66,682)
(64,932)
Pension Plan Administrative Expense
(978)
(1,865)
(788)
(4,773)
(4,733)
(5,348)
(4,496)
(7,271)
Net Change in Fiduciary Net Position
(24,170)
$
(45,407)
$
(28,670)
$
(5,394)
$
(73,913)
$
20,504
$
379
$
7,140
$
Plan Fiduciary Net Position - Beginning
413,501
389,331
343,924
315,254
309,860
235,947
256,451
256,830
Plan Fiduciary Net Position - Ending
389,331
$
343,924
$
315,254
$
309,860
$
235,947
$
256,451
$
256,830
$
263,970
$
Net Pension Liability/(Asset) Ending
293,450
$
309,461
$
326,682
$
307,324
$
396,464
$
348,580
$
311,531
$
277,010
$
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability
57.02 %
52.64 %
49.11 %
50.21 %
37.31 %
42.39 %
45.19 %
48.79 %
Covered Employee Payroll
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Net Pension Liability as a Percentage of
Covered Employee Payroll
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
79
South Metro Fire Rescue Volunteer Pension Plan
Schedule of Required Supplemental Information
Schedule of Changes in Net Pension Liability/(Asset) and
Related Ratios Multiyear Last Ten Fiscal Years
(to be built prospectively)
See the independent auditor’s report and notes to the required supplementary information.
Measurement period ending December 31,
2014
2015
2016
2017
2018
2019
2020
2021
Total Pension Liability
Service Cost
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
Interest on Total Pension Liability
23,088
23,439
22,781
23,373
22,456
24,080
23,225
22,995
Benefit Changes
—
—
—
—
—
—
—
—
Difference between Expected and
Actual Experience
21,632
—
5,285
—
46,692
—
9,345
—
Changes of Assumptions
—
—
13,362
—
11,763
—
—
—
Benefit Payments
(47,577)
(32,220)
(32,220)
(34,907)
(36,300)
(36,300)
(36,300)
(35,400)
Net Change in Pension Liability
(2,857)
$
(8,781)
$
9,208
$
(11,534)
$
44,611
$
(12,220)
$
(3,730)
$
(12,405)
$
Total Pension Liability - Beginning
331,202
328,345
319,564
328,772
317,238
361,849
349,629
345,899
Total Pension Liability - Ending
328,345
$
319,564
$
328,772
$
317,238
$
361,849
$
349,629
$
345,899
$
333,494
$
Plan Fiduciary Net Position
Employer Contributions
—
$
—
$
—
$
—
$
—
$
4,140
$
11,311
$
11,311
$
Pension Plan Net Investment Income
24,758
6,357
16,253
42,320
573
36,827
31,368
38,253
Benefit Payments
(47,577)
(32,220)
(32,220)
(34,907)
(36,300)
(36,300)
(36,300)
(35,400)
Pension Plan Administrative Expense
(941)
(1,631)
(766)
(3,458)
(3,227)
(3,889)
(3,224)
(5,627)
Net Change in Fiduciary Net Position
(23,760)
$
(27,494)
$
(16,733)
$
3,955
$
(38,954)
$
778
$
3,155
$
8,537
$
Plan Fiduciary Net Position - Beginning
374,986
351,226
323,732
306,999
310,954
272,000
272,778
275,933
Plan Fiduciary Net Position - Ending
351,226
$
323,732
$
306,999
$
310,954
$
272,000
$
272,778
$
275,933
$
284,470
$
Net Pension Liability/(Asset) Ending
(22,881)
$
(4,168)
$
21,773
$
6,284
$
89,849
$
76,851
$
69,966
$
49,024
$
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability
106.97 %
101.30 %
93.38 %
98.02 %
75.17 %
78.02 %
79.77 %
85.30 %
Covered Employee Payroll
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Net Pension Liability as a Percentage of
Covered Employee Payroll
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
80
Cherry Hills Old Hire Plan
Schedule of Required Supplemental Information
Schedule of Changes in Net Pension Liability/(Asset) and
Related Ratios Multiyear Last Ten Fiscal Years
(to be built prospectively)
See the independent auditor’s report and notes to the required supplementary information.
Measurement period ending December 31,
2014
2015
2016
2017
2018
2019
2020
2021
Total Pension Liability
Service Cost
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
Interest on Total Pension Liability
323,296
317,279
321,975
316,762
311,152
305,634
254,807
247,687
Benefit Changes
—
—
—
—
—
—
—
—
Difference between Expected and
Actual Experience
—
(151,064)
—
(2,929)
—
(353,791)
—
(132,085)
Assumption Changes
—
296,129
—
—
—
268,236
—
—
Benefit Payments
(404,573)
(402,436)
(396,933)
(385,824)
(391,541)
(377,681)
(371,496)
(356,974)
Net Change in Pension Liability
(81,277)
$
59,908
$
(74,958)
$
(71,991)
$
(80,389)
$
(157,602)
$
(116,689)
$
(241,372)
$
Total Pension Liability - Beginning
4,509,247
4,427,970
4,487,878
4,412,920
4,340,929
4,260,540
4,102,938
3,986,249
Total Pension Liability - Ending
4,427,970
$
4,487,878
$
4,412,920
$
4,340,929
$
4,260,540
$
4,102,938
$
3,986,249
$
3,744,877
$
Plan Fiduciary Net Position
Employer Contributions
201,921
$
201,921
$
201,921
$
214,110
$
—
$
430,845
$
216,735
$
216,735
$
Employee Contributions
—
—
—
—
—
—
—
—
Pension Plan Net Investment Income
160,764
45,805
118,377
298,155
5,886
255,681
208,704
249,749
Benefit Payments
(404,573)
(402,436)
(396,933)
(385,824)
(391,541)
(377,681)
(371,496)
(356,974)
Pension Plan Administrative Expense
(6,875)
(3,687)
(5,643)
(2,568)
(5,157)
(3,070)
(4,457)
(3,089)
Net Change in Fiduciary Net Position
(48,763)
$
(158,397)
$
(82,278)
$
123,873
$
(390,812)
$
305,775
$
49,486
$
106,421
$
Plan Fiduciary Net Position - Beginning
2,500,186
2,451,423
2,293,026
2,210,748
2,334,621
1,943,809
2,249,584
2,299,070
Plan Fiduciary Net Position - Ending
2,451,423
$
2,293,026
$
2,210,748
$
2,334,621
$
1,943,809
$
2,249,584
$
2,299,070
$
2,405,491
$
Net Pension Liability/(Asset) Ending
1,976,547
$
2,194,852
$
2,202,172
$
2,006,308
$
2,316,731
$
1,853,354
$
1,687,179
$
1,339,386
$
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability
55.36 %
51.09 %
50.10 %
53.78 %
45.62 %
54.83 %
57.68 %
64.23 %
Covered Employee Payroll
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Net Pension Liability as a Percentage of
Covered Employee Payroll
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
81
Retiree Health Savings Plan
Schedule of Required Supplemental Information
Schedule of Changes in Net OPEB Liability and
Related Ratios Multiyear Last Ten Fiscal Years
(to be built prospectively)
See the independent auditor’s report and notes to the required supplementary information.
Measurement period ending December 31,
2022
Total OPEB Liability
Service cost
2,262,960
$
Interest cost
400,035
Changes of benefit terms
—
Differences between expected and actual
experience
—
Changes of assumptions or other inputs
(2,040,939)
Benefit Payments
(1,398,985)
Net Change in OPEB Liability
(776,929)
$
Total OPEB Liability - Beginning
17,855,709
Total OPEB Liability - Ending
17,078,780
$
Covered Employee Payroll
82,142,530
$
Net OPEB Liability as a Percentage of
Covered Employee Payroll
21%
Actuarial measurement date
December 31, 2022
Actuarial method
Entry Age Normal based on level of percentage of projected salary
Amortization method
Experience/Assumptions gains and losses are amortized over a closed period of 12.2
years starting the current fiscal year, equal to the average remaining service of active
and inactive plan members (who have no future service).
Benefit increase rate
3% per annum. The rate is discretionary.
Termination
The rate of withdrawal is based on the withdrawal assumption used in the 2021 Fire and
Police Pension Association Statewide Defined Benefit Plan Actuarial valuation. The
rate of withdrawal for reasons other than death and retirement is dependent on an
employee’s age and years of service.
Retirement age
Sample retirement ages and associated probabilities are based on the 2021 Fire and
Police Pension Association Statewide Defined Benefit Plan Actuarial Valuation. In
order to account for the Plan’s additional District contribution per the rule of 75, we
have extended the over 25 YoS retirement age table through age 64.
82
South Metro Fire Rescue FPPA Plan
Schedule of Required Supplemental Information
Schedule of the District’s Proportionate Share of the Net Pension Liability (Asset)
Statewide Defined Benefit Plan
Last Ten Fiscal Years
(to be built prospectively)
*Covered payroll does not include Littleton Fire Rescue employees as data is not available.
The amounts presented for each fiscal year were determined as of December 31 is based on the measurement date of
the Plan. Information earlier than 2017 is available under Cunningham Fire Protection District and City of Littleton
and is not reflected here.
See the independent auditor’s report and notes to the required supplementary information.
Measurement period ending December 31,
2017
2018
2019
2020
2021
District's proportionate (percentage) of the
collective net pension liability (asset)
0.871%
2.998%
2.781%
2.613%
2.414%
District's proportionate share of the collective
pension liability (asset)
1,253,117
$
3,790,142
$
(1,572,926)
$
(5,673,024)
$
(13,079,974)
$
Covered payroll
5,126,225
$
5,954,853
$
*
18,688,319
$
19,514,338
$
19,806,860
$
District's proportionate share of the net pension
liability (asset) as a percentage of its covered-
employee payroll
24.45%
63.65%
-8.42%
-29.07%
-66.04%
Plan fiduciary net position as a percentage of
the total pension liability
106.34%
95.20%
101.90%
106.70%
116.20%
83
South Metro Fire Rescue FPPA Plan
Schedule of Required Supplemental Information
Schedule of the District’s Proportionate Share of the Net Pension Liability (Asset)
Statewide Hybrid Plan
Last Ten Fiscal Years
(to be built prospectively)
*Covered payroll is not available and is reflected under City of Littleton.
The amounts presented for each fiscal year were determined as of December 31 is based on the measurement date of
the Plan. Information earlier than 2018 is available under City of Littleton and is not reflected here.
See the independent auditor’s report and notes to the required supplementary information.
Measurement period ending December 31,
2018
2019
2020
2021
District's proportionate (percentage) of the collective net
pension liability (asset)
6.858%
5.217%
4.654%
4.847%
District's proportionate share of the collective pension
liability (asset)
(946,680)
$
(1,015,894)
$
(1,279,952)
$
(1,837,850)
$
Covered payroll
N/A
*
807,926
$
790,383
$
820,057
$
District's proportionate share of the net pension liability
(asset) as a percentage of its covered-employee payroll
N/A
*
-125.74%
-161.94%
-224.11%
Plan fiduciary net position as a percentage of the total
pension liability
123.46%
130.06%
137.99%
149.01%
84
Parker Fire Protection District Volunteer Pension Plan
Schedule of Contributions Multiyear
Last Ten Fiscal Years
Note: 2018 contribution of $30,619 was made in January 2019.
See the independent auditor’s report and notes to the required supplementary information.
FY Ending
December
31,
Acturially
Determined
Contribution
Actual
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Actual Contribution
as a % of
Covered Payroll
2022
94,767
$
94,767
$
—
$
N/A
N/A
2021
45,550
45,550
—
N/A
N/A
2020
45,550
45,550
—
N/A
N/A
2019
30,619
30,619
—
N/A
N/A
2018
30,619
30,619
—
N/A
N/A
2017
28,670
28,670
—
N/A
N/A
2016
28,670
28,670
—
N/A
N/A
2015
27,895
27,596
299
N/A
N/A
2014
27,895
27,895
—
N/A
N/A
2013
24,628
27,895
(3,267)
N/A
N/A
85
South Metro Fire Rescue Volunteer Pension Plan
Schedule of Contributions Multiyear
Last Ten Fiscal Years
See the independent auditor’s report and notes to the required supplementary information.
FY Ending
December 31,
Acturially
Determined
Contribution
Actual
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Actual Contribution
as a % of
Covered Payroll
2022
48,233
$
48,233
$
—
$
N/A
N/A
2021
11,311
11,311
—
N/A
N/A
2020
11,311
11,311
—
N/A
N/A
2019
2,070
2,070
—
N/A
N/A
2018
2,070
2,070
—
N/A
N/A
2017
—
—
—
N/A
N/A
2016
—
—
—
N/A
N/A
2015
—
—
—
N/A
N/A
2014
—
—
—
N/A
N/A
2013
—
—
—
N/A
N/A
86
Cherry Hills Old Hire Pension Plan
Schedule of Contributions Multiyear
Last Ten Fiscal Years
See the independent auditor’s report and notes to the required supplementary information.
FY Ending
December 31,
Acturially
Determined
Contribution
Actual
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Actual Contribution
as a % of
Covered Payroll
2022
216,735
$
216,735
$
—
$
N/A
N/A
2021
216,735
216,735
—
N/A
N/A
2020
216,735
216,735
—
N/A
N/A
2019
216,735
216,735
—
N/A
N/A
2018
214,110
214,110
—
N/A
N/A
2017
214,110
214,110
—
N/A
N/A
2016
201,921
201,921
—
N/A
N/A
2015
201,921
201,921
—
N/A
N/A
2014
206,100
201,921
4,179
N/A
N/A
2013
206,100
206,100
—
N/A
N/A
87
South Metro Fire Rescue FPPA Plan
Statewide Defined Benefit Plan
Schedule of Contributions Multiyear
Last Ten Fiscal Years
Notes:
*Information earlier than 2018 is available under Cunningham Fire Protection District and City of Littleton and is
not reflected here.
See the independent auditor’s report and notes to the required supplementary information.
FY Ending
December 31,
Acturially
Determined
Contribution
Actual
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Contribution
as a % of
Covered Payroll
2022
1,666,658
$
1,666,658
$
—
$
18,526,902
$
9.00%
2021
1,655,277
1,655,277
—
19,806,860
8.36%
2020
1,679,084
1,679,084
—
19,514,338
8.60%
2019
1,611,495
1,611,495
—
18,688,319
8.62%
2018
458,903
458,903
—
5,954,853
7.71%
Actuarial Determined
Contributions
Actuarial valuation date
January 1, 2021
Actuarial method
Entry Age Normal
Amortization method
Level % of Payroll, Open
Amortization period
30 years
Long-term investment rate of return*
7.00%
Projected salary increases*
4.25% - 11.25%
Cost of living adjustments (COLA)
0.00%
*Includes inflation at
2.50%
88
South Metro Fire Rescue FPPA Plan
Statewide Hybrid Plan
Schedule of Contributions Multiyear
Last Ten Fiscal Years
Notes:
*Information earlier than 2019 is available under City of Littleton and is not reflected here.
See the independent auditor’s report and notes to the required supplementary information.
FY Ending
December 31,
Actuarially
Determined
Contribution
Actual
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Contribution
as a % of
Covered Payroll
2022
62,306
$
59,850
$
2,456
$
623,520
$
9.99%
2021
82,057
82,057
—
820,057
10.01%
2020
79,038
79,038
—
790,383
10.00%
2019
80,793
80,793
—
807,926
10.00%
Actuarial Determined
Contributions
Actuarial valuation date
January 1, 2021
Actuarial method
Entry Age Normal
Amortization method
Level % of Payroll, Open
Amortization period
30 years
Long-term investment rate of return, net*
7.00%
Projected salary increases*
4.25% - 11.25%
Cost of living adjustments (COLA)
0.00%
*Includes inflation at
2.50%
89
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2022
NOTE 1 – BUDGETARY BASIS
In accordance with State Budget Law, the Board holds public hearings in the fall each year to
approve the budget and appropriate the funds for the ensuing year.
Annual budgets are adopted
on a basis consistent with GAAP for all governmental and internal service funds. The
appropriation is at the total fund expenditures level and lapses at year end.
The Board can
modify the budget by line item within the total appropriation without notification.
The
appropriation can only be modified upon completion of notification and publication
requirements.
Unused appropriations lapse at the end of the fiscal year
.
NOTE 2 – SCHEDULE OF CONTRIBUTIONS
Significant actuarial methods and assumptions used to determine the contribution rates for
the pension plans are as follows:
1.
Parker Fire Protection District Volunteer Pension Fund
Valuation Date:
Actuarially determined contribution rates are calculated as of
January 1 of odd numbered years. The contribution rates
have a one-year lag, so the actuarial valuation as of January
1, 2021 determine the contribution amounts for 2022 and
2023. No changes in sssumptions or benefit terms since the
prior valuation.
Actuarial Cost Method
Entry Age Normal
Amortization Method
Level Dollar, Open
Remaining Amortization Period
18
Years
Asset Valuation Method
5-Year Smoothed Fair Value
Inflation
2.5%
Salary Increases
N/A
Investment Rate of Return
7.00%
Retirement Age
50% Per Year of Eligibility Until 100% at Age 65.
Mortality
Pre-retirement:
2006 central rates from the RP-2014
Employee Mortality Tables for males and females
projected to 2018 using the MP-2017 projection
scales, and then projected prospectively using the
ultimate rates of the scale for all years, 50%
multiplier for off-duty mortality.
90
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2022
(Continued)
Post-retirement:
2006 central rates from the RP-
2014 Annuitant Mortality Tables for males and
females projected to 2018 using the MP-2017
projection scales, and then projected prospectively
using the ultimate rates of the scale for all years.
Disabled:
2006 central rates from the RP-2014
Disabled Mortality Tables for males and females
projected to 2018 using the MP-2017 projection
scales, and then projected prospectively using the
ultimate rates of the scale for all years.
2.
South Metro Fire Rescue Volunteer Pension Fund
Valuation Date:
Actuarially determined contribution rates are calculated as of
January 1 of odd numbered years. The contribution rates
have a one-year lag, so the actuarial valuation as of January
1, 2021, determines the contribution amounts for 2022 and
2023. No changes in assumptions or benefit terms since the
prior valuation.
Actuarial Cost Method
Entry Age Normal
Amortization Method
Level Dollar, Open
Remaining Amortization Period
20
Years
Asset Valuation Method
5-Year Smoothed Fair Value
Inflation
2.5%
Salary Increases
N/A
Investment Rate of Return
7.00%
Retirement Age
50% per year of eligibility until 100% at age 65
Mortality
Pre-retirement:
2006 central rates from the RP-2014
Employee Mortality Tables for males and females
projected to 2018 using the MP-2017 projection
scales, and then projected prospectively using the
ultimate rates of the scale for all years, 50%
multiplier for off-duty mortality.
Post-retirement:
2006 central rates from the RP-
2014 Annuitant Mortality Tables for males and
females projected to 2018 using the MP-2017
projection scales, and then projected prospectively
using the ultimate rates of the scale for all years.
Disabled:
2006 central rates from the RP-2014
91
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2022
(Continued)
Disabled Mortality Tables for males and females projected
to 2018 using the MP-2017 projection scales, and then
projected prospectively using the ultimate rates of the
scale for all years.
3.
Cherry Hills Old Hire Fire Pension Fund
Valuation Date:
Actuarially determined contribution rates are calculated as of
January 1 of even numbered years. The contribution rates
have a one-year lag, so the actuarial valuation as of January
1, 2020, determines the contribution amounts for 2021 and
2022.
Actuarial Cost Method
Entry Age Normal
Amortization Method
N/A
Remaining Amortization Period
N/A
Asset Valuation Method
5-Year Smoothed Fair Value
Inflation
2.50%
Salary Increases
N/A
Investment Rate of Return
6.50%
Retirement Age
Any remaining actives are assumed to retire immediately.
Mortality
Post-Retirement:
2006 central rates from the RP-2014
Annuitant Mortality Tables for males and females
projected to 2018 using the MP-2017 projection scales,
and then projected prospectively using the ultimate rates
of the scale for all years.
Disabled (pre-1980):
Post-retirement rates set forward
three years.
92
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERAL FUND
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
2022
2021
REVENUE
Property taxes
124,988,592
$
114,601,105
$
Specific ownership taxes
9,508,226
9,401,888
Charges for service - transports
12,769,267
11,691,509
Charges for service - plan review fees
2,450,898
1,822,037
Contracted services
-
318,362
Medicaid supplemental fee
6,951,772
6,191,645
Dispatch fees
121,721
116,726
Intergovernmental and other reimbursements
1,989,489
1,720,567
Investment income (loss)
(222,190)
(95,251)
Miscellaneous revenue
521,726
511,638
Total revenue
159,079,501
146,280,226
EXPENDITURES
Public Safety
Operations
103,360,737
98,725,921
Administration
37,018,066
33,439,979
Fire Marshal
5,486,597
5,326,911
Dispatch
3,930,886
3,164,907
Debt service lease payments - principal
449,044
-
Debt service lease payments - interest
5,291
-
Capital outlay
2,054,133
-
Total expenditures
152,304,754
140,657,718
Excess (deficiency) of revenue over expenditures
6,774,747
5,622,508
OTHER FINANCING SOURCES (USES)
Transfers from other funds
-
2,132,598
Transfers to other funds
(15,000,000)
(16,364,817)
Lease proceeds
194,968
2,041,002
Sale of capital assets
1,695,905
589,411
Total other financing sources (uses)
(13,109,127)
(11,601,806)
Net change in fund balance
(6,334,380)
(5,979,298)
Fund balances - beginning of year
48,360,866
54,340,164
Fund balances - end of year
42,026,486
$
48,360,866
$
93
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
CHERRY HILLS PROPERTY TAX SPECIAL REVENUE FUND
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
2022
2021
REVENUE
Property taxes
284,099
$
265,620
$
Specific ownership taxes
18,007
18,431
Investment income (loss)
18,116
718
Total revenue
320,222
284,769
EXPENDITURES
Administration
4,270
3,989
Contribution to pension plan
216,735
216,735
Total expenditures
221,005
220,724
Excess (deficiency) of revenue over
expenditures
99,217
64,045
Fund balances - beginning of year
753,516
689,471
Fund balances - end of yea
r
852,733
$
753,516
$
94
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
CHERRY HILLS PROPERTY TAX – SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2022
Original and
Final Budget
Actual
Variance
Positive
(Negative)
REVENUE
Property taxes
285,069
$
284,099
$
(970)
$
Specific ownership taxes
19,955
18,007
(1,948)
Investment income (loss)
5,000
18,116
13,116
Total revenue
310,024
320,222
10,198
EXPENDITURES
Administration
4,276
4,270
6
Contribution to pension plan
216,735
216,735
—
Operating
3,989
—
3,989
Total expenditures
225,000
221,005
3,995
Excess of revenue over expenditures
85,024
99,217
14,193
Fund balances - beginning of year
755,417
753,516
(1,901)
Fund balance - end of yea
r
840,441
$
852,733
$
12,292
$
95
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
2022
2021
REVENUE
Investment income (loss)
262,517
$
—
$
Excise taxes
480,365
577,988
Total revenue
742,882
577,988
EXPENDITURES
Equipment capital outlay
130,512
108,292
Vehicle capital outlay
4,392,862
1,668,346
Buildings and grounds capital outlay
4,489,220
2,700,118
Debt service lease payments - principal
103,261
—
Debt service lease payments - interest
15,595
—
Total expenditures
9,131,450
4,476,756
Excess (deficiency) of revenue over expenditures
(8,388,568)
(3,898,768)
OTHER FINANCING SOURCES (USES)
Transfers from other funds
15,000,000
15,364,817
Lease proceeds
2,042,732
—
Total other financing sources (uses)
17,042,732
15,364,817
Net change in fund balance
8,654,164
11,466,049
Fund balances - beginning of year
11,466,049
—
Fund balances - end of yea
r
20,120,213
$
11,466,049
$
96
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2022
Ori
g
inal and Final
Budget
Actual
Variance
Positive
(Negative)
REVENUE
Investment income (loss)
—
$
262,517
$
262,517
$
Excise taxes
480,000
480,365
365
Total revenue
480,000
742,882
262,882
EXPENDITURES
Operations
106,311
106,312
(1)
Administration
13,486,324
2,370,479
11,115,845
Debt service lease payments - principal
—
103,261
(103,261)
Debt service lease payments - interest
—
15,595
(15,595)
Capital outlay
—
6,535,803
(6,535,803)
Total expenditures
13,592,635
9,131,450
4,461,185
Excess (deficiency) of revenue over
expenditures
(13,112,635)
(8,388,568)
4,198,303
OTHER FINANCING SOURCES (USES)
Transfers from other funds
15,000,000
15,000,000
—
Lease proceeds
—
2,042,732
2,042,732
Sale of capital assets
1,635,000
—
(1,635,000)
Total other financing sources (uses)
16,635,000
17,042,732
407,732
Net change in fund balance
3,522,365
8,654,164
5,131,799
Fund balance - beginning of year
10,847,459
11,466,049
618,590
Fund balance - end of yea
r
14,369,824
$
20,120,213
$
5,750,389
$
97
SOUTH METRO FIRE RESCUE FIRE PROTECTION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUNDS AVAILABLE
BUDGET TO ACTUAL - BUDGETARY BASIS
BUILDING RENTAL FUND
YEAR ENDED DECEMBER 31, 2022
Original and
Final Budget
Actual
V
ar
i
ance
Positive
(Negative)
REVENUE
Lease rental income
757,138
$
756,015
$
(1,123)
$
Lease interest income
—
9,304
9,304
Total revenue
757,138
765,319
8,181
EXPENDITURES
Fleet, buildings and grounds maintenance
657,402
633,038
24,364
Capital outlay
69,875
51,606
18,269
Total expenditures
727,277
684,644
42,633
Excess (deficiency) revenue over expenditures
29,861
80,675
50,814
Funds available - beginning of year
402,531
402,531
—
Funds available - end of yea
r
432,392
$
483,206
$
50,814
$
Reconciliation to GAAP basis
Excess of revenue (under) expenditures
80,675
$
Capital purchases
5,578
Depreciation
(341,804)
Net income - GAAP basis
(255,551)
$
Funds available - end of year
483,206
$
Net investment in capital assets
5,654,670
6,137,876
$
are computed as follows:
Funds available at December 31, 2021
98
DESCRIPTION OF STATISTICAL SECTION CONTENTS
December 31, 2022
This part of the District’s annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and
required supplementary information say about the government's overall financial health.
Contents:
Schedules:
Financial Trends:
These schedules contain trend information that may assist the reader in
understanding how the District’s financial performance has changed over time.
Revenue Capacity:
These schedules contain information that may assist the reader in assessing the
viability of the District’s largest revenue source, property taxes.
Debt Capacity:
These tables present information to help the reader assess the District’s current
level of overlapping debt and the ability to issue general obligation debt in the
future.
Demographic and Economic Statistics:
These schedules offer demographic and economic indicators that may help the
reader to understand the environment within which the District’s financial
activity takes place.
Operating Information:
These schedules contain information about the District’s operations and
resources to help the reader understand how the District’s financial information
relates to the services the District’s provides.
99-102
103-107
108-110
111-112
113-115
99
South Metro Fire Rescue Fire Protection District
Net Position by Component
Last Ten Fiscal Years
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Governmental activities
Restated
Restated
Restated
Net invested in capital and
lease assets
37,980,429
$
35,572,670
$
40,310,492
$
45,859,677
$
49,544,941
$
63,425,921
$
75,411,948
$
76,995,272
$
75,283,384
$
74,406,518
$
Restricted
1,677,229
1,677,229
1,677,229
1,859,413
1,907,503
1,216,495
1,453,217
5,024,028
6,073,619
22,002,083
Unrestricted
45,390,957
46,813,523
41,729,011
33,889,278
31,389,743
31,821,955
53,509,303
52,421,108
58,224,837
29,002,889
Total governmental activities net
position
85,048,615
$
84,063,422
$
83,716,732
$
81,608,368
$
82,842,187
$
96,464,371
$
130,374,468
$
134,440,408
$
139,581,840
$
125,411,490
$
Business-type activities
Net invested in capital and
lease assets
7,264,343
$
7,533,403
$
7,080,071
$
6,760,140
$
5,623,230
$
6,303,231
$
5,987,080
$
5,994,538
$
5,990,896
$
5,654,670
$
Unrestricted
3,491,121
4,317,329
5,323,063
6,722,583
2,673,249
2,273,623
2,433,901
2,413,718
402,427
483,206
Total business-type activities net
position
10,755,464
$
11,850,732
$
12,403,134
$
13,482,723
$
8,296,479
$
8,576,854
$
8,420,981
$
8,408,256
$
6,393,323
$
6,137,876
$
Primary government
Net invested in capital and
lease assets
45,244,772
$
43,106,073
$
47,390,563
$
52,619,817
$
55,168,171
$
69,729,152
$
81,399,028
$
82,989,810
$
81,274,280
$
80,061,188
$
Restricted
1,677,229
1,677,229
1,677,229
1,859,413
1,907,503
1,216,495
1,453,217
5,024,028
6,476,046
22,002,083
Unrestricted
48,882,078
51,130,852
47,052,074
40,611,861
34,062,992
34,095,578
55,943,204
54,834,826
58,224,837
29,486,095
Total primary government net
position
95,804,079
$
95,914,154
$
96,119,866
$
95,091,091
$
91,138,666
$
105,041,225
$
138,795,449
$
142,848,664
$
145,975,163
$
131,549,366
$
Fiscal Year
100
South Metro Fire Rescue Fire Protection District
Changes in Net Position
Last Ten Fiscal Years
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Governmental activities:
Restated
Restated
Restated
Operations
38,306,121
$
42,244,360
$
37,210,868
$
38,237,300
$
47,931,085
$
66,461,430
$
90,702,140
$
104,286,977
$
101,426,388
$
123,401,598
$
Administration
12,416,779
13,902,184
20,249,118
24,680,189
19,019,862
22,518,212
34,162,182
28,148,043
33,421,508
44,255,426
Fire Marshal
3,080,050
3,383,915
2,430,675
2,699,413
2,862,739
3,182,917
4,842,321
5,143,336
5,328,172
5,513,590
Dispatch
-
-
-
-
-
-
-
3,159,531
3,307,622
3,944,869
Total governmental activities expenses
53,802,950
$
59,530,459
$
59,890,661
$
65,616,902
$
69,813,686
$
92,162,559
$
129,706,643
$
140,737,887
$
143,483,690
$
177,115,483
$
Business-type activities:
Building rental
1,047,679
$
1,096,244
$
1,087,384
$
864,682
$
858,801
$
589,904
$
988,600
$
885,152
$
824,751
$
1,020,870
$
Ambulance transports
3,607,107
3,798,215
3,960,029
3,776,570
3,125,249
-
-
-
-
-
Total business-type activities expenses
4,654,786
$
4,894,459
$
5,047,413
$
4,641,252
$
3,984,050
$
589,904
$
988,600
$
885,152
$
824,751
$
1,020,870
$
Total primary government expenses
58,457,736
$
64,424,918
$
64,938,074
$
70,258,154
$
73,797,736
$
92,752,463
$
130,695,243
$
141,623,039
$
144,308,441
$
178,136,353
$
Program Revenues
Governmental activities:
Operations
947,793
$
723,404
$
647,132
$
544,856
$
848,205
$
7,264,272
$
12,906,023
$
11,923,577
$
9,722,230
$
12,938,471
$
Administration
815,825
763,593
807,828
863,869
781,274
496,510
1,069,662
827,285
964,843
2,445,088
Fire Marshal
1,159,437
1,334,826
1,477,511
1,701,879
1,803,896
1,680,971
2,587,981
1,867,387
1,822,037
2,450,898
Metcom/Technical service
-
-
-
213,426
440,511
1,221,460
198,511
-
-
-
Dispatch
-
-
-
-
-
-
-
115,770
116,726
121,721
Contracted services - City of Littleton
-
-
-
-
-
-
9,092,902
-
-
Total governmental activities program revenues
2,923,055
$
2,821,823
$
2,932,471
$
3,324,030
$
3,873,886
$
10,663,213
$
25,855,079
$
14,734,019
$
12,625,836
$
17,956,178
$
Business-type activities:
Building rental
1,283,913
$
1,561,458
$
1,450,494
$
1,447,718
$
1,287,984
$
820,434
$
781,682
$
837,182
$
809,823
$
765,319
$
Ambulance transports*
4,075,906
4,034,584
4,034,916
4,210,217
4,575,987
-
-
-
-
-
Total governmental activities program revenues
5,359,819
$
5,596,042
$
5,485,410
$
5,657,935
$
5,863,971
$
820,434
$
781,682
$
837,182
$
809,823
$
765,319
$
Total primary government program revenues
8,282,874
$
8,417,865
$
8,417,881
$
8,981,965
$
9,737,857
$
11,483,647
$
26,636,761
$
15,571,201
$
13,435,659
$
18,721,497
$
Net (Expense)/Revenue
Governmental activities
(50,879,895)
$
(56,708,636)
$
(56,958,190)
$
(62,292,872)
$
(65,939,800)
$
(81,499,346)
$
(103,851,564)
$
(126,003,868)
$
(130,857,854)
$
(159,159,305)
$
Business-type activities
705,033
701,583
437,997
1,016,683
1,879,921
230,530
(206,918)
(47,970)
(14,928)
(255,551)
Total primary government net expense
(50,174,862)
$
(56,007,053)
$
(56,520,193)
$
(61,276,189)
$
(64,059,879)
$
(81,268,816)
$
(104,058,482)
$
(126,051,838)
$
(130,872,782)
$
(159,414,856)
$
General Revenues
Governmental activities:
Property tax
51,005,289
$
51,354,176
$
51,684,596
$
53,737,956
$
54,069,865
$
71,775,702
$
97,206,003
$
113,457,721
$
114,866,725
$
125,272,691
$
Specific ownership tax
3,964,219
4,197,425
4,485,684
4,542,980
5,263,971
6,208,669
8,665,297
8,924,544
9,420,319
9,526,233
Excise taxes
-
-
-
-
-
-
-
347,056
577,988
480,365
Medicare/medicaid supplemental fee
-
-
-
-
-
-
-
5,076,521
6,191,645
6,951,772
Interest income (loss)
125,608
254,646
315,995
556,239
381,539
897,067
1,956,095
1,229,751
(93,890)
90,614
Gain (loss) on sale of assets
876,929
(821,111)
85,914
47,236
71,745
1,392,020
162,270
14,554
348,898
532,658
Intergovernmental and other reimbursement
s
-
-
-
-
-
-
-
-
-
1,822,409
Miscellaneous income
1,077,180
693,545
39,311
1,748,472
272,568
417,764
246,365
1,019,661
3,555,003
312,213
Transfers
-
(380,472)
-
-
7,164,540
-
-
-
1,132,598
-
Total governmental activities
57,049,225
$
55,298,209
$
56,611,500
$
60,632,883
$
67,224,228
$
80,691,222
$
108,236,030
$
130,069,808
$
135,999,286
$
144,988,955
$
Business-type activities:
Miscellaneous income
163,481
$
12,435
$
113,212
$
55,257
$
4,528
$
—
$
—
$
1,150
$
99
$
—
$
Investment earnings
-
778
1,193
7,649
93,847
49,845
51,045
34,095
-
-
Sale of assets
40,698
-
-
-
-
-
-
-
-
-
Transfers
-
380,472
-
-
(7,164,540)
-
-
-
(2,000,000)
-
Total business-type activities
204,179
$
393,685
$
114,405
$
62,906
$
(7,066,165)
$
49,845
$
51,045
$
35,245
$
(1,999,901)
$
—
$
Total primary government
57,253,404
$
55,691,894
$
56,725,905
$
60,695,789
$
60,158,063
$
80,741,067
$
108,287,075
$
130,105,053
$
133,999,385
$
144,988,955
$
Change in Net Position
Governmental activities
6,169,330
(1,410,427)
(346,690)
(1,659,989)
1,284,428
(808,124)
4,384,466
4,065,940
5,141,432
(14,170,350)
Business-type activities
909,212
1,095,268
552,402
1,079,589
(5,186,244)
280,375
(155,873)
(12,725)
(2,014,829)
(255,551)
Total primary government
7,078,542
$
(315,159)
$
205,712
$
(580,400)
$
(3,901,816)
$
(527,749)
$
4,228,593
$
4,053,215
$
3,126,603
$
(14,425,901)
$
Expenses
Fiscal Year
101
South Metro Fire Rescue Fire Protection District
Fund Balances, Governmental Funds
Last Ten Fiscal Years
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
General Fund
Restated
Restated
Restated
Non-spendable
207,902
$
289,979
$
248,845
$
1,421,568
$
2,996,772
$
2,825,564
$
3,273,634
$
3,813,422
$
3,768,136
$
4,185,744
$
Restricted
1,677,229
1,677,229
1,677,229
1,855,245
1,907,503
358,245
832,863
4,334,557
4,377,298
4,941,307
Commmited
—
—
—
—
—
—
—
—
31,501,896
—
Assigned
—
—
—
—
—
—
—
—
132,598
—
Unassigned
29,781,644
32,725,239
34,078,639
33,265,913
34,738,963
33,822,836
47,181,196
46,192,185
8,580,938
32,899,435
Total general fund
31,666,775
$
34,692,447
$
36,004,713
$
36,542,726
$
39,643,238
$
37,006,645
$
51,287,693
$
54,340,164
$
48,360,866
$
42,026,486
$
All Other Governmental Funds
Non-spendable
—
—
—
—
—
—
—
—
5,466,332
8,447,917
Restricted: Cherry Hills Property Tax Fund
—
425,234
443,110
448,375
498,984
558,250
620,354
689,471
753,516
852,733
Restricted: Excise tax revenue
—
—
—
—
—
—
—
—
942,805
1,423,170
Committed
—
—
—
—
—
—
—
—
5,056,912
10,249,126
Assigned, reported in:
Capital project funds
18,982,476
18,986,209
12,434,339
5,351,715
30,165
—
—
—
—
—
Special revenue funds:
Parker Fire Protection District Fund
149,958
149,958
149,945
—
—
—
—
—
—
—
SMFR Fund
149,949
149,949
150,006
—
—
150,000
—
—
—
—
CFPD Fund
—
—
—
—
—
150,000
—
—
—
—
Total all other governmental funds
19,282,383
$
19,711,350
$
13,177,400
$
5,800,090
$
529,149
$
858,250
$
620,354
$
689,471
$
12,219,565
$
20,972,946
$
Fiscal Year
102
South Metro Fire Rescue Fire Protection District
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Revenues
Restated
Restated
Restated
Property taxes
51,005,289
$
51,354,176
$
51,684,596
$
53,737,957
$
54,069,865
$
71,775,702
$
97,206,003
$
113,457,721
$
114,866,725
$
125,272,691
$
Specific ownership taxes
3,964,220
4,197,425
4,485,684
4,542,980
5,263,971
6,208,669
8,665,297
8,924,544
9,420,319
9,526,233
Excise taxes
-
-
-
-
-
-
-
347,056
577,988
480,365
Net investment earnings
125,609
254,646
315,995
556,239
381,539
897,067
1,956,095
1,223,376
(94,533)
58,443
Charges for service - transports*
-
-
-
-
-
6,089,477
9,980,440
9,695,303
11,691,509
12,769,267
Charges for service - plan review fees**
-
-
-
-
-
1,637,111
2,535,506
1,808,045
1,822,037
2,450,898
Contracted services
-
-
-
-
-
-
9,092,902
312,120
318,362
-
Medicaid supplemental fee
-
-
-
-
-
-
2,345,340
5,543,184
6,191,645
6,951,772
Dispatch fees**
-
-
-
-
-
1,035,219
106,494
115,770
116,726
121,721
Intergovernmental and other reimbursements**
-
-
-
-
-
1,082,535
1,184,460
2,037,085
1,720,567
1,989,489
Lease rental income
198,708
247,862
203,673
217,357
155,553
151,091
173,195
180,249
209,527
209,514
Othe
r
3,801,528
3,267,508
2,768,108
3,126,271
3,990,901
1,085,546
683,108
1,138,445
302,111
312,212
Total Revenues
59,095,354
59,321,617
59,458,056
62,180,804
63,861,829
89,962,417
133,928,840
144,782,898
147,142,983
160,142,605
Expenditures
Public Safety
Administration
10,294,860
11,801,328
17,954,589
21,497,558
22,069,455
27,541,683
33,425,842
31,675,249
31,338,790
39,609,550
Operations
38,044,547
40,218,314
37,132,243
38,150,318
41,677,165
60,006,147
85,370,644
93,884,423
99,043,648
103,467,049
Fire Marshal
3,072,077
3,369,134
2,484,518
2,698,514
2,889,075
3,164,295
4,736,858
5,076,746
5,326,911
5,486,597
Dispatch
—
—
—
—
—
—
—
3,095,996
3,164,907
3,930,886
Debt Service ***
Principal
86,305
46,093
—
—
—
—
—
—
—
552,305
Interes
t
5,344
1,885
—
—
—
—
—
—
—
20,886
Capital outlay
1,733,403
4,179,098
7,273,541
7,764,767
5,576,244
9,539,066
3,101,567
8,062,884
6,480,942
8,589,936
Total expenditures
53,236,536
59,615,852
64,844,891
70,111,157
72,211,939
100,251,191
126,634,911
141,795,298
145,355,198
161,657,209
Excess of revenue
over (under) expenditures
$5,941,573
$3,409,877
$(5,221,983)
$(7,930,353)
$(8,350,110)
$(10,288,774)
$7,293,929
$2,987,600
$1,787,785
$(1,514,604)
Other Financin
g
Sources (Uses)
Lease proceeds
—
—
—
—
—
—
—
—
2,041,002
2,237,700
Sale of capital assets
82,755
3,704,112
164,852
47,236
71,745
1,392,020
162,270
133,988
589,411
1,695,905
Transfer from other funds
54,228,710
58,286,717
55,182,986
1,445,577
6,107,936
88,794,752
106,889,940
15,000,000
17,497,415
15,000,000
Transfer (to) other funds
(54,228,710)
(58,667,189)
(55,182,986)
(401,757)
—
(88,794,752)
(106,889,940)
(15,000,000)
(16,364,817)
(15,000,000)
Total other financing sources (uses)
82,755
3,323,640
164,852
1,091,056
6,179,681
1,392,020
162,270
133,988
3,763,011
3,933,605
N
et c
h
ange
i
n
f
un
d
b
a
l
ances
$5
,
941
,
573
$3
,
029
,
405
$(5
,
221
,
983)
(6,839,297)
$
(2,170,429)
$
(8,896,754)
$
7,456,199
$
3,121,588
$
5,550,796
$
2,419,001
$
Debt service as a percentage
of noncapital expenditures
0.2 %
0.1 %
—%
—%
—%
—%
—%
—%
—%
—%
Fiscal Year
103
South Metro Fire Rescue Fire Protection District
Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years
Source: Finance Department
Fiscal
Year
Property
Tax
Specific
Ownership
Tax
Total
2013
51,005,289
3,964,219
54,969,508
2014
51,354,176
4,197,425
55,551,601
2015
51,684,596
4,485,684
56,170,280
2016
53,737,957
4,542,980
58,280,937
2017
54,069,865
5,263,971
59,333,836
2018
71,775,702
6,208,669
77,984,371
2019
97,206,003
8,665,297
105,871,300
2020
113,457,721
8,924,544
122,382,265
2021
114,866,725
9,420,319
124,287,044
2022
125,272,691
9,526,233
134,798,924
104
South Metro Fire Rescue Fire Protection District
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
The commercial property assessment ratio is 29% for all years.
Note: The 2017 Real Assessed Value includes $9,824,938 of Assessed Value (Unknown amount of Real Value) that is part of a
TIF District Increment
* 2015 and beyond includes Cherry Hills Fire Assessed and Actual values.
**2018 and beyond includes Cunningham Fire Protection District Assessed and Actual values.
***2019 and beyond includes Littleton Fire Rescue Assessed and Actual values.
Source: Arapahoe, Douglas and Jefferson County Assessors
Fiscal
Year
Real
Assessed
Value
Personal
Assessed
Value
Real
Actual
Value
Personal Actual
Value
SMFR
Mill
Levy
Ratio of Total
Assessed to
Total Estimate
Actual Value
Residential
Property
Assessment
Ratio
2013
4,367,442,344
377,636,430
35,498,753,463
1,302,186,194
9.25
12.89 %
7.96 %
2014
4,492,201,404
432,556,019
35,928,957,116
1,491,624,062
9.25
13.16 %
7.96 %
2015*
4,850,713,475
544,797,418
40,930,196,129
1,886,348,738
9.25
12.60 %
7.96 %
2016
5,663,707,647
585,259,348
48,575,497,159
2,033,871,376
9.25
12.35 %
7.96 %
2017
5,719,186,598
609,450,211
49,293,495,859
2,101,534,429
9.25
12.31 %
7.96 %
2018**
6,959,830,755
609,646,295
64,769,394,048
2,102,342,901
9.25
11.32 %
7.20 %
2019***
9,833,539,324
791,205,973
97,289,094,814
2,727,335,684
9.25
10.62 %
7.20 %
2020
12,050,269,207
896,312,573
120,934,573,594
3,091,455,902
9.25
10.44 %
7.15 %
2021
12,174,310,839
899,099,709
122,665,417,907
3,100,635,856
9.25
10.40 %
7.15 %
2022
13,273,841,117
877,088,648
132,820,283,126
3,026,518,643
9.25
10.42 %
7.15 %
105
South Metro Fire Rescue Fire Protection District
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(per $1,000 of assessed value)
Source: Various Entities and Arapahoe, Douglas, and Jefferson County Assessors Offices.
Government
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
South Metro Fire Rescue
9.2500
9.250
9.250
9.250
9.250
9.250
9.250
9.250
9.250
9.319
Cunningham Fire Protection District
—
—
—
—
—
14.603
14.600
9.250
—
—
Parker Fire Protection District
13.978
12.978
12.978
—
—
—
—
—
—
—
Cities and Towns
City of Castle Pines
4.500
4.500
4.500
4.500
4.500
4.500
4.500
4.500
4.500
4.500
City of Centennial
5.073
5.015
5.030
5.026
2.087
5.003
5.002
5.033
5.033
5.013
City of Greenwood Village
2.932
2.932
2.932
2.932
2.932
2.932
2.932
2.932
2.932
2.932
City of Lakewood
4.711
4.711
4.711
4.711
City of Littleton
6.662
2.000
2.000
2.000
City of Lone Tree
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
Town of Foxfield
20.400
20.400
20.400
20.400
20.400
4.982
4.982
4.982
4.982
4.982
Town of Parker
2.602
2.602
2.602
2.602
2.602
2.602
2.602
2.602
2.602
2.602
Counties
Arapahoe County
17.130
16.950
14.856
14.039
14.039
13.301
11.685
11.685
12.013
11.762
Douglas County
19.774
19.774
19.774
18.774
24.274
24.274
24.274
24.274
24.274
23.024
Jefferson County
25.978
25.978
25.978
26.978
26.978
26.978
24.274
22.332
23.578
26.241
School Districts
Cherry Creek School District #5
57.492
56.702
49.703
53.232
49.687
49.995
46.997
49.724
49.012
49.012
Douglas County School District
48.277
48.277
42.439
42.439
41.064
44.950
43.840
43.504
43.504
43.797
Littleton Public School
56.985
56.601
53.424
53.030
53.030
51.166
56.945
64.740
64.744
64.936
Jefferson County R-1 School District
50.620
50.370
50.170
47.490
45.940
42.878
49.410
47.070
48.105
45.520
Other Local Governments
792.205
745.807
686.991
646.746
636.321
663.375
611.781
580.611
526.838
780.400
106
South Metro Fire Rescue Fire Protection District
Principal Property Tax Payers
Current Year and 10 Years Ago
Source: Douglas, Arapahoe, and Jefferson County Assessors' Offices
Per Cent
Per Cent
of Total
of Total
Taxpayer
Assessed Value
Rank
Assessed Value
Assessed Value
Rank
Assessed Value
Park Meadows Mall LLC
102,606,450
1
0.73%
HCA Healthone LLC
87,160,000
2
0.62%
Catholic Health Initiatives
71,755,450
3
0.51%
Martin Marietta Corporation
67,498,350
4
0.48%
Granite Place LLC
37,578,780
5
0.27%
6340 Fiddlers Green Circle LP
33,938,410
6
0.24%
33,350,000
2
0.97%
Greenwood Property Corp
33,495,000
7
0.24%
CS Lone Tree LLC
33,322,570
8
0.24%
Prime Us-Village Center Station II LLC
33,264,160
9
0.24%
Kaiser Foundation Hospitals
28,764,420
10
0.21%
Verizon Wireless
52,084,540
1
1.51%
Qwest Corp
25,333,800
3
0.74%
GPI Plaza Tower LP
23,925,000
4
0.70%
Public Service of Colorado
20,663,080
5
0.60%
Peakview Tower
14,210,000
6
0.41%
Palazzo Verdi LLC
13,920,000
7
0.40%
CREF Tuscany Plaza LLC
13,630,001
8
0.40%
Village Center Station I
12,470,001
9
0.36%
5251 DTC Parkway LLC
12,180,000
10
0.35%
529,383,590
$
3.79 %
221,766,422
$
6.44 %
2022
2013
107
South Metro Fire Rescue Fire Protection District
Property Tax Levies and Collections
Last Ten Fiscal Years
Source: Finance Department
Note: Net of tax credits and abatements.
Fiscal
Year
Total Tax
Levy
Current Tax
Collections
% of Current
Taxes Collected
Delinquent
Tax Collection
Total Tax
Collections
Ratio of
Total Tax to
Total Tax Levy
Outstanding
Delinquent
Taxes
Ratio of
Delinquent
Taxes to Total
Tax Levy
2013
51,790,046
51,289,058
99.03 %
(283,769)
51,005,289
98.48 %
32,664
0.063 %
2014
51,865,957
51,584,734
99.46 %
(230,558)
51,354,176
99.01 %
91,320
0.176 %
2015
51,944,348
51,898,770
99.91 %
(214,174)
51,684,596
99.50 %
125,705
0.242 %
2016
54,129,916
53,737,957
99.28 %
(13,654)
53,724,302
99.25 %
31,830
0.059 %
2017
54,235,662
54,128,981
99.80 %
(59,116)
54,069,865
99.69 %
335,944
0.619 %
2018
72,172,841
71,765,691
99.44 %
10,011
71,775,702
99.45 %
275,428
0.382 %
2019
97,531,612
97,206,003
99.67 %
(138,940)
97,067,063
99.52 %
657,420
0.674 %
2020
114,041,893
113,457,721
99.49 %
(121,646)
113,336,075
99.38 %
677,768
0.594 %
2021
115,446,511
114,866,725
99.50 %
(129,244)
114,737,481
99.39 %
944,418
0.818 %
2022
126,008,116
125,272,691
99.42 %
39,830
125,312,521
99.45 %
521,274
0.414 %
108
South Metro Fire Rescue Fire Protection District
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Notes:
Details regarding the District's outstanding debt can be found in the notes to the financial statements.
Source: Finance Department
Fiscal
Year
General
Obligation
Bonds
Capital
Leases
Certificates
of Participation
Business
Type
Certificates
of Participation
Total
Primary
Government
Per
Capita
2013
—
$
46,093
$
—
$
—
$
46,093
$
0.23
$
2014
—
—
—
—
—
—
2015
—
—
—
—
—
—
2016
—
—
—
—
—
—
2017
—
—
—
—
—
—
2018
—
—
—
—
—
—
2019
—
—
—
—
—
—
2020
—
—
—
—
—
—
2021
—
—
—
—
—
—
2022
—
—
—
—
—
—
Governmental Activities
109
South Metro Fire Rescue Fire Protection District
Direct and Overlapping Governmental Activities Debt
As of December 31, 2022
Source:
South Metro Fire Rescue Fire Protection District Finance
Various entities provided outstanding debt information
Assessed value data used to estimate the applicable percentages provided by the Assessor’s offices of Douglas,
Arapahoe, and Jefferson Counties
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the District.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of South Metro Fire Rescue Fire Protection District. This process recognizes that, when
considering the District's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident - and therefore
responsible for repaying the debt of each overlapping government.
* For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's
taxable assessed value that is within the District's boundaries and dividing it by each unit's total taxable assessed value.
Net Debt
Outstanding
P
ercen
t
age
Applicable
to District*
A
moun
t
Applicable
to District
DIRECT:
South Metro Fire Rescue
—
$
100 %
—
$
OVERLAPPING:
Jefferson County
46,869,014
25 %
11,717,254
Cherry Creek School District #5
607,430,000
85 %
516,315,500
Douglas County School District
332,620,000
50 %
166,310,000
Jefferson County R-1 School District
776,191,384
25 %
194,047,846
Littleton School District
382,571,195
5%
19,128,560
City of Lakewood
14,495,059
50 %
7,247,530
City of Littleton
10,087,858
50 %
5,043,929
City of Lone Tree
2,878,133
50 %
1,439,067
Other Local Governments
654,614,140
76 %
496,671,940
Total Overlapping Debt
2,827,756,783
$
1,417,921,624
$
Total Direct & Overlapping Debt
1,417,921,624
$
110
South Metro Fire Rescue Fire Protection District
Legal Debt Margin Information
Last Ten Fiscal Years
Source: Douglas, Arapahoe, and Jefferson County Assessors' Offices and South Metro Fire Rescue Fire Protection District Finance Department.
(1)
Colorado Revised Statutes.
2013
2014
2015
2016
2017
Total Assessed Value
4,723,283,371
$
4,920,392,972
$
4,971,618,704
$
5,760,702,401
$
5,837,254,988
$
Debt Limit - 50% of total assessed value (1)
2,361,641,686
2,460,196,486
2,485,809,352
2,880,351,201
2,918,627,494
Amount of debt applicable to debt limit
-
-
-
-
-
Less amount available for debt service
-
-
-
-
-
Net amount of debt applicable to debt limit
Legal debt margin
2,361,641,686
$
2,460,196,486
$
2,485,809,352
$
2,880,351,201
$
2,918,627,494
$
2018
2019
2020
2021
2022
Total Assessed Value
7,823,668,573
$
12,387,082,905
$
12,986,634,357
$
14,061,183,368
$
13,979,077,519
$
Debt Limit - 50% of total assessed value (1)
3,911,834,287
6,193,541,453
6,493,317,179
7,030,591,684
6,989,538,760
Amount of debt applicable to debt limit
-
-
-
-
-
Less amount available for debt service
-
-
-
-
-
Net amount of debt applicable to debt limit
Legal debt margin
3,911,834,287
$
6,193,541,453
$
6,493,317,179
$
7,030,591,684
$
6,989,538,760
$
Fiscal Year
111
South Metro Fire Rescue Fire Protection District
Demographic and Economic Statistics
Last Ten Fiscal Years (Douglas County)
(1)
Douglas County Census, not seasonally adjusted. Current year data is not yet available.
(2)
Percentage of population that has attained a Bachelor’s Degree or higher.
(3)
Douglas County School District
Sources: Federal Reserve Bank of St. Louis, Colorado Division of Local Government
Demographics, Douglas County Schools Web Page and U.S Census Bureau-
Douglas County
South Metro Fire Rescue Fire Protection District
Demographic and Economic Statistics
Last Ten Fiscal Years (Arapahoe County)
(1)
Arapahoe County Census, not seasonally adjusted. Current year data is not yet available.
(2)
Percentage of population that has attained a Bachelor’s Degree or higher.
(3)
Cherry Creek School District
Sources: Federal Reserve Bank of St. Louis, Colorado Division of Local Government
Demographics, Cherry Creek Schools Web Page, and U.S Census Bureau- Arapahoe County
Fiscal
Year
Population
Per Capita
Income (1)
Median
Age
Education
Level (2)
School
Enrollment (3)
Unemployment
Rate
2013
306,232
62,493
$
36.6
54.6 %
66,000
5.20 %
2014
314,574
66,088
$
36.5
55.8 %
67,000
4.00 %
2015
321,964
67,576
$
38.5
61.0 %
66,702
3.00 %
2016
328,088
68,560
$
36.6
61.0 %
67,000
2.50 %
2017
335,668
71,208
$
36.0
57.5 %
68,000
2.20 %
2018
342,776
73,662
$
38.9
58.0 %
68,880
2.60 %
2019
362,954
78,455
$
39.8
58.4 %
67,591
2.30 %
2020
357,978
78,980
$
40.1
58.6 %
67,305
5.30 %
2021
368,990
87,841
$
40.4
59.2 %
62,979
4.10 %
2022
375,988
N/A
40.5
N/A
63,876
2.50 %
Fiscal
Year
Population
Per Capita
Income (1)
Median
Age
Education
Level (2)
School
Enrollment (3)
Unemployment
Rate
2013
608,209
49,731
$
36.0
38.5 %
52,681
7.40 %
2014
618,798
53,297
$
35.0
38.8 %
54,226
4.10 %
2015
630,637
54,476
$
36.7
39.0 %
54,449
3.20 %
2016
638,571
55,116
$
36.1
39.0 %
54,695
2.60 %
2017
644,132
56,642
$
35.0
40.7 %
54,178
2.80 %
2018
651,215
60,180
$
37.1
41.6 %
54,852
3.80 %
2019
653,143
64,477
$
37.4
42.8 %
55,839
2.30 %
2020
655,070
66,691
$
37.8
43.4 %
56,228
7.20 %
2021
654,900
74,267
$
38.3
44.5 %
53,558
5.80 %
2022
655,808
N/A
38.0
N/A
N/A
3.10 %
112
South Metro Fire Rescue Fire Protection District
Principal Employers
December 31, 2022
Source: Metro Denver Economic Development Corporation (Arapahoe, Douglas, and Jefferson Counties)
Data related to all employers within the District is unavailable; cannot calculate percentage of employees
Employees
Rank
Employees
Rank
Lockheed Martin Corporation
7,540
1
Comcast
5,590
2
Charles Schwab
4,470
3
HealthONE
3,970
4
Charter Communications
3,800
5
Centura Health: Corporate Headquarters & Littleton Adventist Hospital
2,810
6
UnitedHealthcare
2,770
7
Ball Corporation
2,740
8
Empower Retirement
2,680
9
Raytheon Company
2,510
10
Catholic Health Initiatives
8,000
1
Dish Network Corporation
6,500
2
Western Union Fincl Svcs Inc
3,200
3
CH2M Hill
805
4
Blockbuster LLC
750
5
Best Western Plus Hotel
728
6
Starz Entertainment
400
7
Developmental Pathways
275
8
Stolle Machinery Company LLC
150
9
HBC Solutions
146
10
38,880
20,954
2022
2013
113
South Metro Fire Rescue Fire Protection District
Full-time Equivalent District Government Employees by Function/Program
Last Ten Fiscal Years
Source: South Metro Fire Rescue Fire Protection District Finance Department
* Ambulance FTE’s are captured in the Field Operations line from 2017 forward
Function/Program
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Field Operations
284.00
288.00
279.00
302.00
332.00
401.00
608.00
641.00
596.00
612.00
Administration
20.00
20.00
32.00
34.00
35.00
71.00
77.00
80.00
78.00
91.00
Fire Marshal
24.00
17.00
19.00
23.00
28.00
34.00
28.00
30.00
34.00
34.00
Fleet Services
11.00
11.00
10.00
10.00
12.00
14.00
13.00
15.00
13.00
15.00
Ambulance *
20.00
19.00
19.00
22.00
-
-
-
-
-
-
Total FTE
359.00
355.00
359.00
390.75
407.00
520.00
726.00
766.00
721.00
752.00
114
South Metro Fire Rescue Fire Protection District
Operating Indicators by Function/Program
Last Ten Fiscal Years
Source: South Metro Fire Rescue Fire Protection District various departments
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Field Operations (in & out of district)
Fire Calls
381
312
382
443
458
587
713
1,032
793
846
Emergency Medical Calls
10,457
11,322
11,458
11,552
12,139
16,375
27,810
26,620
30,299
32,658
Alarms
2,452
2,451
2,325
2,187
2,179
2,837
4,355
4,039
4,380
4,785
Others
4,514
1,873
1,766
1,751
1,442
2,324
3,079
2,915
3,162
3,509
Number of hours of firefighter training
58,910
56,914
65,664
80,035
52,472
51,545
104,236
115,378
109,276
135,692
Hours of officer trainings
8,954
7,443
7,222
5,770
3,761
2,403
16,593
20,614
17,699
14,430
Hours of driver/operator trainings
2,540
681
4,416
3,698
2,035
3,698
11,834
13,464
18,932
18,658
Support Services
Square footage of building maintained
349,091
320,084
320,084
320,084
320,084
387,846
452,385
460,805
460,805
460,805
Life Saftey Bureau & Preparedness
Fire Investigations
281
301
286
330
310
474
600
185
129
719
Plan Reviews
4,400
4,872
4,877
3,517
4,189
5,879
6,215
5,050
5,709
7,053
Construction Inspections
5,703
7,038
6,772
3,799
5,568
6,502
6,183
5,662
5,994
7,077
Business Inspections
4,218
3,932
2,916
-
3,158
4,308
4,324
5,372
6,032
11,295
South Metro Safety Foundation Classes
101
92
91
122
163
165
287
84
143
174
Car seat checks
502
386
269
366
326
309
432
422
498
436
Apparatus/Crew resident attended
-
26,270
-
-
-
-
-
-
-
-
Prevention staff community/school students
13,256
30,857
-
-
9,847
37,748
44,641
12,116
38,841
24,857
Youth firesetter intervention
8
21
16
-
46
21
22
1
18
13
Fleet Services
Total number of warranty repairs
68
37
62
28
13
44
12
25
23
3
Total billable shop labor hours
9,698
9,575
8,574
8,843
9,865
9,939
11,185
8,546
10,375
15,274
Shop productivity rate
75.0 %
74.0 %
71.4 %
83.5 %
85.5 %
84.6 %
90.2 %
98.0 %
70.0 %
76.7 %
Total number of repairs
2,984
2,854
2,501
2,911
3,198
3,153
3,868
4,252
6,378
3,920
Ambulance
EMS Transports (in district only)
7,089
7,347
7,430
6,226
7,350
9,748
18,590
17,792
20,467
22,266
% of Transports to Castle Rock Adventist
-
-
-
-
-
1.16 %
0.57 %
0.53 %
0.85 %
1.53 %
% of Transports to Centennial Health
-
-
-
-
-
0.78 %
0.77 %
0.83 %
2.06 %
2.91 %
% of Transports to Childrens Hospital
-
-
-
-
-
1.06 %
1.91 %
1.56 %
2.25 %
2.39 %
% of Transports to Littleton Hospital
15.93 %
13.03 %
10.42 %
5.00 %
5.05 %
2.42 %
30.48 %
27.87 %
25.50 %
23.89 %
% of Transports to Medical Center of Aurora
-
-
-
-
-
11.27 %
5.96 %
5.45 %
5.20 %
4.99 %
% of Transports to Parker Adventist Hospital
27.78 %
27.85 %
30.86 %
34.00 %
36.65 %
33.78 %
17.86 %
18.96 %
16.69 %
16.68 %
% of Transports to Porter Adventist Hospital
1.58 %
1.18 %
1.20 %
1.00 %
1.05 %
0.97 %
0.59 %
0.62 %
0.62 %
0.62 %
% of Transports to Rose Medical Center
-
-
-
-
-
0.41 %
0.32 %
0.26 %
0.36 %
0.30 %
% of Transports to Skyridge Medical Center
41.02 %
43.42 %
43.42 %
47.00 %
52.73 %
40.88 %
29.37 %
27.79 %
26.70 %
24.94 %
% of Transports to Southlands Medical
-
-
-
-
-
1.14 %
0.65 %
0.70 %
0.81 %
0.67 %
% of Transport to Swedish Medical Center
10.07 %
9.21 %
7.50 %
7.00 %
5.81 %
3.81 %
6.79 %
6.27 %
6.34 %
5.97 %
% of Transport to UC Health
-
-
-
-
-
-
4.21 %
8.69 %
11.96 %
14.27 %
% of Transports to University Hospital
-
-
-
-
-
1.42 %
0.21 %
0.09 %
0.16 %
0.08 %
% of Transports to All Others
-
-
-
-
-
0.90 %
0.32 %
0.38 %
0.51 %
0.75 %
Collection Rate
53.94 %
54.14 %
55.73 %
52.71 %
51.99 %
72.00 %
76.00 %
72.00 %
71.00 %
71.00 %
Fiscal Year
115
South Metro Fire Rescue Fire Protection District
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Source:
South Metro Fire Rescue Fire Protection District various departments
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Field Operations
Fire Stations
17
17
17
17
17
20
29
30
30
30
Communication towers
4
4
4
4
4
4
4
4
4
4
Training facility
1
1
1
1
1
1
1
1
1
1
Driving facility
1
1
1
1
1
1
1
1
1
1
Engines
19
19
19
18
23
33
32
32
30
34
Tenders
6
6
6
6
6
8
6
6
6
6
Quints
2
1
1
1
-
-
-
-
-
-
Squirts
-
-
-
-
-
2
-
-
-
-
Aerials
6
5
5
7
7
9
9
9
9
9
ARFF vehicles
2
2
2
3
3
3
3
3
3
3
Chief/Staff vehicles
15
15
15
15
16
20
18
17
9
12
BC Vehicles
6
6
6
9
8
14
13
13
12
16
Wildland vehicles
12
12
12
18
19
23
23
20
20
20
Hazmat vehicles
2
2
2
2
2
3
3
3
1
2
Utility vehicle
1
1
1
1
1
1
-
-
2
5
Snow Cat
1
1
1
1
1
1
1
1
1
-
Dive Unit
1
1
1
1
1
2
2
2
2
2
Watercraft
1
1
1
1
1
1
1
1
1
1
Heavy Rescue
2
1
1
3
2
7
4
4
4
4
Tow Vehicles
2
2
2
2
2
2
1
1
1
1
Command vehicle
1
1
1
1
1
1
1
-
-
-
Plow/Ladder testing truck
1
1
1
1
1
4
2
6
5
4
Trailers
5
15
15
15
20
27
28
27
27
24
Support Services
Headquarters buildings
2
1
1
1
1
1
1
1
1
1
Pool vehicles
-
1
1
1
1
1
-
3
3
3
Chief/Staff vehicles
5
5
5
5
20
22
39
40
40
35
Storage locations
2
1
1
1
2
2
2
2
2
3
Fire Marshal
Pool vehicles
4
2
2
2
1
1
3
3
3
3
Assigned vehicles
21
22
22
22
22
25
25
27
24
24
Fleet Services
Repair shop
1
1
1
1
1
1
1
1
1
1
Repair vehicles
2
2
2
2
3
2
2
2
2
2
Parts vehicles
3
3
3
3
1
1
1
0
0
0
Pool vehicles
11
7
7
7
5
2
2
2
0
0
IMT Vehicle
1
1
1
1
1
3
0
0
0
0
Lift
2
2
2
2
1
9
13
13
12
12
Overhead crane
1
1
1
1
1
1
1
1
1
1
Ambulance
Medic units
17
17
17
18
22
27
25
28
25
20
ARM vehicle
1
1
1
1
1
1
1
2
2
2
Fiscal Year
Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance
with
Government Auditing Standards
Independent Auditor’s Report
Board of Directors
South Metro Fire Rescue Fire Protection District
Centennial, Colorado
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in
Government Auditing Standards
,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
South Metro Fire Rescue Fire Protection District (the District), as of and for the year ended December 31,
2022, and the related notes to the financial statements, which collectively comprise the District’s basic
financial statements, and have issued our report thereon dated June 28, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies, and therefore, material weaknesses or significant deficiencies may exist that were
not identified.
However, as described in the accompanying schedule of findings and responses, we
identified certain deficiencies in internal control that we consider to be a material weakness and a
significant deficiency.
A
deficiency in internal control
exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis.
A
material weakness
is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a
timely basis.
We consider the deficiency described in the accompanying schedule of findings and
responses as item 2022-001 to be a material weakness.
A
significant deficiency
is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
We consider the deficiency described in the accompanying schedule of findings and
responses as item 2022-002 to be a significant deficiency.
116
Board of Directors
South Metro Fire Rescue Fire Protection District
2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the financial statements.
However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards
.
South Metro Fire Authority’s Response to Findings
Government Auditing Standards
requires the auditor to perform limited procedures on the District’s
response to the findings identified in our audit and described in the accompanying schedule of findings
and responses.
The District’s response was not subjected to the other auditing procedures applied in the
audit of the financial statements, and accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance.
This report is an integral part of an audit performed in accordance with
Government Auditing Standards
in considering the entity’s internal control and compliance.
Accordingly,
this communication is not suitable for any other purpose.
Denver, Colorado
June 28, 2023
117
South Metro Fire Rescue Fire Protection District
Schedule of Findings and Responses
Year Ended December 31, 2022
3
2022-001
Other Postemployment Benefits (OPEB) – Retiree Health Saving Plan
Criteria or Specific Requirement:
In accordance with Governmental Accounting
Standards Board (GASB) Statement No. 75,
Accounting and Financial Reporting for
Postemployment Benefit Plans Other than Pensions
(GASB 75), state and local
governments are required to record an actuarially determined net other
postemployment benefit (OPEB) liability on the face of the financial statements and
make certain disclosures and include specific required supplemental information in the
annual comprehensive financial report.
In order to properly value and measured the
liability, participant populations must be complete and accurate and contain required
information pertaining to the participant date of birth, hire date, termination/retirement
date and other such data (referred to as the census data).
Condition:
The District did not record any OPEB liability or related deferrals related to
the Retiree Health Saving Plan.
Cause:
Effective January 1, 2022, the District modified the Retiree Health Saving Plan
to provide minimum balances upon separation from service for eligible employees.
The changes made to the Retiree Health Saving Plan, resulted in the plan now
qualifying as an OPEB plan in accordance with GASB Statement No. 75.
The District
was unaware that the Retiree Health Saving Plan qualified as an OPEB and thus did
not obtain an actuarial valuation.
Effect:
An actuarially determined net OPEB liability of $17,100,000 and related
deferrals of $1,900,000 were recorded as of December 31, 2022.
Recommendation:
We recommend that the District review any changes in benefits that
effect postemployment to determine if they quality as an OPEB and require actuarial
valuation.
Views of Responsible Officials and Planned Corrective Actions:
Management of
the District let FORVIS know about the new RHS benefit during the audit fieldwork.
At
that point, FORVIS recommended engaging an actuary to be able to record OPEB
liability and management did just that.
Going forward, the finance department will
consider financial statements implications during benefit negotiations with the local
union to have a complete understanding of the impact on the financial statements and
to allow time to obtain needed reports as needed.
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South Metro Fire Rescue Fire Protection District
Schedule of Findings and Responses
Year Ended December 31, 2022
4
2022-002
Compensated Absences
Criteria or Specific Requirement:
Management is responsible for establishing and
maintaining effective internal controls over financial reporting.
Effective internal
controls are an important component of a system that helps ensure transactions are
recorded timely and in the proper reporting period, thereby providing accurate financial
data.
Specifically, the District should have controls in place to ensure that the
compensated absences liability is calculated and recorded correctly.
Accounting
principles generally accepted in the United States of America (US GAAP) that address
the proper recognition and accounting of compensated absences is GASB Statement
No. 16,
Accounting for Compensated Absences.
Condition:
The sick leave buyout was not calculated correctly for those individuals
with more than 25 years of service.
An audit adjustment of $832,645 was proposed
and management elected to pass on recording. Additionally, the District’s sick leave
buyout internal policy did not agree to the Union Agreement effective January 1, 2022,
for individuals with 10, 15 or 20 years of service.
An audit adjustment of $317,482 was
proposed and management elected to pass on recording.
Cause:
Established internal controls were not effective in preventing or detecting and
correcting errors in the recording and recognition of compensated absences.
Effect:
Audit adjustments of $1,150,127 were proposed and management elected to
pass on recording.
Recommendation:
We recommend that the District perform additional procedures at
year-end to ensure that compensated absences, specifically sick leave buy-out are
calculated correctly and in accordance with District policy.
In addition, we recommend
the District align its internal policy with the Union Agreement to help ensure accruals
and buy-outs are calculated consistently and correctly.
Views of Responsible Officials and Planned Corrective Actions
:
Finance will
implement compensated absences review to ensure the calculation complies with the
buyout policy.
In future union agreement updates, Finance and Human Resources will
ensure that internal policies are reflected correctly within the working Union
Agreement.
To clarify, the actual sick leave buyouts for 2022 were calculated correctly
per the updated policy and reviewed by the Chief Financial Officer prior to payment, so
it was only the compensated absence calculation for the service years 25+ that was
miscalculated.
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